Name________________________________

HR Ch 3

Multiple Choice
Identify the choice that best completes the statement or answers the question.
____

1. Which industrialized nation emerged as the only intact major power after World War II?
a. The United States
b. Japan
c. Germany
d. Canada
e. Africa

____

2. All EXCEPT which of the following countries are considered the leading industrial powers in today's global
economy?
a. The United States
b. Japan
c. Germany
d. India
e. All of these are considered leading industrial powers.

____

3. Which of the following trends is NOT true of developed nations today (such as the United States, Japan, the
United Kingdom, and so on)?
a. Population growth is slowing.
b. International trade is expanding.
c. The labor force is growing quickly.
d. Competition from foreign countries is increasing.
e. Countries are becoming increasingly interdependent.

____

4. Under a geocentric staffing model,

a. host-country nationals are used heavily because they know the local markets.
b. the organization will have a skeleton human resource department at the host-country
location, while the home-country human resource department retains all control.
c. the organization seeks to hire the best person available for a position regardless of where
the individual comes from.
d. expatriate home-country nationals are hired to fill higher-level foreign positions.
e. the home-office perspective takes precedence over local issues.

____

5. Which international staffing model involves staffing high-level foreign jobs with parent-country nationals?
a. Globalcentric
b. Polycentric
c. Geocentric
d. Egocentric
e. None of these

____

6. No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that
individuals should not benefit financially from other people's misfortunes. This cultural factor pertains to
what type of difference?
a. Language
b. Business practices
c. Children's rights
d. Roles
e. Personal norms

____

7. Dietrich prefers structured circumstances instead of situations that are relatively ambiguous. Which cultural
dimension does he exhibit?
a. Individualism
b. Collectivism
c. Masculinity
d. Time orientation
e. Uncertainty Avoidance

____

8. What aspect of international business do NAFTA and the EU represent?

a. Tariff systems
b. Economic communities
c. Trade controls
d. Export regulations
e. Quota guidelines

____

9. John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of
others. He would score highly on the ____ dimension of Hofstede's model of culture.
a. power distance
b. individualism
c. masculinity
d. uncertainty avoidance
e. time orientation

____ 10. What is the term used when a company lets a foreign firm make and/or distribute its products in a local
market?
a. Exporting
b. Licensing
c. Direct investment
d. Joint venture
e. Strategic alliance
____ 11. What is an advantage of direct investment in another country?
a. Less risk is involved.
b. It is not expensive.
c. There is more profit potential.
d. The facility is less integrated in the foreign market.
e. Synergy between business partners is achieved.
____ 12. Local issues that must be dealt with by firms conducting business in foreign markets include all of the
following EXCEPT
a. recruiting.
b. compensation.
c. selection.
d. human resource technology.
e. training.

____ 13. Celebrity Cruises is based in Florida, but it hires workers from various countries to communicate with and
serve guests from around the world. Which of the following is an accurate statement?
a. Celebrity will need to provide the same training to all of its foreign workers.
b. Celebrity will need to provide the same training to all of its workers.
c. Celebrity will need to tailor training to best develop workers from various countries.
d. Celebrity will not need to train its workers.
e. Celebrity will only need to train workers who have contact with customers; other workers
need no training.
____ 14. When a company hires host-country nationals to staff foreign locations in underdeveloped countries, it must
often
a. offer exercise classes.
b. provide extensive training and development.
c. hire a consultant.
d. seek permission from competitors.
e. cut the benefits package provided to employees.
____ 15. Which of the following is NOT likely to be a part of a compensation package designed for an expatriate?
a. Housing benefits
b. Job location assistance for the spouse
c. A cost-of-living allowance
d. A hardship premium
e. Unlimited travel to and from the home country
____ 16. Wangkyo is an electrical engineer who designs power systems for factories. His employer is sending him on a
foreign assignment for one month, to design a system for a new factory that is being built overseas. Which
skills will be MOST important to Wangkyo in his foreign assignment?
a. Technical skills
b. Language skills
c. Cultural skills
d. Financial skills
e. Leadership skills
____ 17. Repatriation occurs when a(n)
a. company sends a manager to a second foreign assignment.
b. expatriate manager comes home from a foreign assignment.
c. manager likes a foreign assignment so much that he or she remains in the foreign country.
d. manager is sent on a foreign assignment.
e. manager on a foreign assignment is compensated in the local currency.
____ 18. More than ______ the world s workforce outside the United States belongs to labor unions.
a. half
b. a third
c. a quarter
d. two thirds
e. three fourths

____ 19. In ______ , labor contracts are not really legal contracts at all but are merely understandings that can be
broken at any time by either party with no penalty.
a. France
b. England
c. Germany
d. Japan
e. the United States
____ 20. Labor relations in ______ tend to be cordial.
a. France
b. England
c. Japan
d. the United States
e. Germany
____ 21. HCNs are LEAST likely to work in ______ positions.
a. clerical
b. line worker
c. maintenance
d. management
e. office worker
Scenario 3.1
Mini-PC is a Houston-based maker of handheld computers. In response to high European demand, Mini-PC
purchased Marstrand Electronics, a handheld manufacturer in Stockholm, Sweden. Mini-PC allowed the
management of Marstrand to continue in their jobs rather than sending U.S. managers to oversee Swedish
operations. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English, value
women's rights, and are predominantly Christian in religious beliefs. Sweden has an extremely stable political
system, a sound economy, a highly educated workforce, and it is a member of the European Union. However,
Swedes do take a different view of work time, in that they expect at least two months of vacation per year.
Also, the Swedish workforce is about 80% unionized, in comparison to Mini-PC's nonunionized workforce.
Sweden has a socialist approach to health benefits, which means higher personal taxes for workers but lower
health benefits costs for employers. When comparing average national scores on Hofstede's dimensions of
culture, the United States and Sweden are about the same in power distance and long-term orientation, but the
United States is higher than Sweden in individualism and uncertainty avoidance and much higher in
masculinity.
____ 22. Refer to Scenario 3.1. Which staffing model is Mini-PC using for its Swedish unit?
a. Geocentric
b. Ethnocentric
c. Polycentric
d. Egocentric
e. Multicentric
____ 23. Refer to Scenario 3.1. On the basis of scores on Hofstede's dimensions of culture, which organization cultural
values will create the most discomfort and resistance among Swedish workers?
a. Swedes will resist Mini-PC's policy of calling everyone, from the CEO to the lowest
worker, by his or her first name.
b. Swedes will place a much greater value on patience and persistence than do Mini-PC's
American workers.
c. Swedes will prefer to emphasize individual contributions, as opposed to Mini-PC workers

in the United States, who value team or group contributions.

d. Swedes will be much less competitive, ambitious, and driven than Mini-PC's American
workers.
e. Swedes will not be comfortable when given tasks that are too structured, as opposed to
American workers, who prefer lots of structure.
____ 24. Refer to Scenario 3.1. Which international strategy is Mini-PC using to expand its international operations?
a. Exporting
b. Licensing
c. Direct investment
d. Joint venture
e. Strategic alliance
____ 25. Refer to Scenario 3.1. Which of the domestic human resource issues is most likely affected (i.e., different at
Marstrand than at Mini-PC) by conditions described in the scenario?
a. Local compensation issues
b. Local selection issues
c. Local training issues
d. Local recruiting issues
e. Local development issues