Question 1

The extent to which a society places a high value on reducing risk and instability describes Hofstede's cultural dimension of:

Accepted Answer

A)   power distance.
B)   individualism.
C)   long-term/short-term orientation.
D)   uncertainty avoidance. D

Question 2

Hewit Computers makes most personnel decisions that affect its foreign branches through an international personnel department located at corporate headquarters in Texas.Hewit's foreign operations are managed primarily by expatriates.Hewit Computers is most likely in stage ________ of internationalization.

Accepted Answer

A)   2
B)   3
C)   4
D)   5 C

Question 3

What are the five dimensions of culture identified by Geert Hofstede? How can an awareness of these dimensions benefit a firm in stage 5 of internationalization?

Accepted Answer

Summary of suggested answer -
•Power distance - the extent to which individuals expect a hierarchical structure that emphasizes status differences.
•Individualism - the degree to which a society values personal goals,autonomy,etc.
•Uncertainty avoidance - the degree to which society values reducing risk and instability.
•Masculinity/femininity - the society's view of assertive behavior and adherence to gender roles as key to success.
•Long-term/short-term orientation - the society's valuing of future as opposed to past or present.
In stage 5,the most advanced stage of internationalization,firms are often called transnational corporations because they owe little allegiance to their country of origin and have weak ties to any given country.Operations are highly decentralized; each business unit is free to make personnel decisions with very loose control from corporate headquarters.HRM practices at stage 5 companies are designed to blend individuals from diverse backgrounds to create a shared corporate (rather than national) identity and a common vision.Understanding Hofstede's cultural dimensions would be especially beneficial at this stage given the wide variety of cultural backgrounds involved with the firm.The five dimensions provide clues regarding the general configuration of HRM strategies that are most likely to mesh with a particular culture's values.

Question 4

The stage of international involvement at which a company first starts a joint venture,if it chooses to do so,is most likely stage:

Accepted Answer

A)   1.
B)   2.
C)   3.
D)   4.

Question 5

Successful HRM practice in the international business environment primarily depends on managers keeping in mind that:

Accepted Answer

A)   HRM practices are transferable between two groups that share a common language.
B)   most international personnel problems are related to cultural and language differences.
C)   hard data on the success or failure of HRM practices related to culture is largely nonexistent.
D)   extensive research supports the effectiveness of HRM practices as a function of national culture.

Question 6

All of the following are key concerns about global outsourcing EXCEPT:

Accepted Answer

A)   online security threats.
B)   unqualified employees.
C)   inadequate quality control.
D)   lack of legislative oversight.

Question 7

A culture's focus on the hierarchy of status in society is one element of the cultural dimension of power distance.

Accepted Answer

A) True 
 B)False

Question 8

For companies in stage ________ of the internationalization process,HRM practices must focus on the selection,training,and compensation of expatriate managers,as well as the development of policies for employees of foreign facilities.

Accepted Answer

A)   1
B)   2
C)   3
D)   5

Question 9

The standard "add-on" incentive for accepting an international assignment is ________ of base salary.

Accepted Answer

A)   15%
B)   25%
C)   35%
D)   45%

Question 10

Studies show a number of internal barriers to firms' exporting,such as:

Accepted Answer

A)   a lack of foreign language ability among management.
B)   insufficient infrastructure in the host country.
C)   an inability to connect with a third party export facilitator.
D)   a lack of knowledge of international markets.

Question 11

A significant difference between selecting an expatriate manager and selecting a manager for a domestic assignment is:

Accepted Answer

A)   reviewing the candidate's political views.
B)   screening the candidate's spouse and family.
C)   measuring the candidate's interpersonal skills.
D)   assessing the candidate's psychological make-up.

Question 12

Additional Case 17.1
Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe.
Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project.
-Refer to Additional Case 17.1.Which of the following best supports the decision to fill management positions in India with expatriates?

Accepted Answer

A)   Hollar desires a greater understanding of local conditions and customs.
B)   Hollar needs to ensure a smooth transfer of business and management practices.
C)   Hollar wants to reduce the firm's compensation costs related to construction of the plant.
D)   Hollar's most globally skilled managers are part of dual-career couples with small children.

Question 13

Malaysia,Mexico,and the Philippines are examples of countries that highly value egalitarianism and participation in decision making.

Accepted Answer

A) True 
 B)False

Question 14

About half of multinational companies provide cross-cultural training to expatriates.

Accepted Answer

A) True 
 B)False

Question 15

General Motors' low premature-return rate of its expatriates is evidence of the effectiveness of its cross-cultural training program.

Accepted Answer

A) True 
 B)False

Question 16

Seneca is a small firm with 350 employees that is considering the idea of exporting.Which of the following would most likely prepare Seneca and its staff for such a move?

Accepted Answer

A)   Establishing a TQM program to meet ISO 9000 standards
B)   Empowering employees through participative management
C)   Establishing an MBO program
D)   Focusing on diversification

Question 17

Additional Case 17.1
Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe.
Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project.
-Refer to Additional Case 17.1.Which of the following questions is LEAST relevant to the decision to fill management positions in India with expatriates or host-country nationals?

Accepted Answer

A)   What is the turnover rate for repatriated Hollar employees?
B)   What is the international health and safety record at Hollar?
C)   How important is it for Hollar to earn community acceptance?
D)   What relocation and salary costs would be incurred by Hollar?

Question 18

A firm that only does business domestically is in stage ________ of internationalization.

Accepted Answer

A)   1
B)   2
C)   3
D)   4

Question 19

Which of the following is LEAST relevant to successful career planning for expatriates?

Accepted Answer

A)   The spouses of expatriates receive adequate career support during the assignment.
B)   Expatriates receive support from the home office through a mentoring program.
C)   The power distance is greater in the home country than in the foreign country.
D)   International assignments act as a step toward advancement within the firm.

Question 20

General Motors has a less than 1% premature return rate of expatriate managers,which is most likely because of its emphasis on:

Accepted Answer

A)   cross-cultural training.
B)   screening candidates' families.
C)   career planning for repatriates.
D)   international HR policies and practices.

Exam 17: International HRM Challenge

The extent to which a society places a high value on reducing risk and instability describes Hofstede's cultural dimension of:

What are the five dimensions of culture identified by Geert Hofstede? How can an awareness of these dimensions benefit a firm in stage 5 of internationalization?

The stage of international involvement at which a company first starts a joint venture,if it chooses to do so,is most likely stage:

Successful HRM practice in the international business environment primarily depends on managers keeping in mind that:

All of the following are key concerns about global outsourcing EXCEPT:

A culture's focus on the hierarchy of status in society is one element of the cultural dimension of power distance.

For companies in stage ________ of the internationalization process,HRM practices must focus on the selection,training,and compensation of expatriate managers,as well as the development of policies for employees of foreign facilities.

The standard "add-on" incentive for accepting an international assignment is ________ of base salary.

Studies show a number of internal barriers to firms' exporting,such as:

A significant difference between selecting an expatriate manager and selecting a manager for a domestic assignment is:

Malaysia,Mexico,and the Philippines are examples of countries that highly value egalitarianism and participation in decision making.

About half of multinational companies provide cross-cultural training to expatriates.

General Motors' low premature-return rate of its expatriates is evidence of the effectiveness of its cross-cultural training program.

Seneca is a small firm with 350 employees that is considering the idea of exporting.Which of the following would most likely prepare Seneca and its staff for such a move?

A firm that only does business domestically is in stage ________ of internationalization.

Which of the following is LEAST relevant to successful career planning for expatriates?

General Motors has a less than 1% premature return rate of expatriate managers,which is most likely because of its emphasis on: