Human Resource Management V2.0 by Laura Portolese – Test Bank

Human Resource Management V2.0 by Laura Portolese – Test Bank

Chapter 14

International HRM

True/False Questions

Section One

1. A multinational company produces its goods domestically and then sells them overseas.

False; Easy

2. A transnational company is a complex organization in which much of the decision making, research and development, and marketing are controlled by the individual foreign market.

True; Easy

3. A trade agreement is an agreement between two or more countries to reduce barriers to trade.

True; Easy

4. Collective societies are based on cohesive groups, whether it be family groups or work groups.

True; Easy

5. Power distance refers to the manner in which a society tolerates uncertainty.

False; Easy

6. A short-term orientation would focus on future rewards for work now, persistence, and the ordering of relationships by status.

False; Easy

7. Norms are the shared expectations about what is considered correct and normal behavior.

True; Easy

8. Material culture can range from symbolic items, such as a crucifix, to items of daily use.

True; Easy

Section Two

9. In a home-country national strategy, people who were born in the country in which the business is operating are employed.

False; Easy

10. A third-country national strategy means to employ people from an entirely different country from the home country and host country.

             True; Easy

11. By using a third-country national strategy, the language barrier in conducting business overseas is completely eliminated.

False; Easy

12. In the adaptation phase of adjustment that an expatriate goes through, there is a feeling of excitement about the new surroundings.

            False; Easy

13. Biculturalism is an adjustment phase wherein the expatriate embraces the new culture and begins to appreciate his/her old life at home as much as the new life overseas.

             True; Easy

14. The main reason why companies use third-country nationals as a staffing strategy is the ability of such a candidate to represent the company’s interests and transfer corporate technology and competencies.

             True; Easy

Section Three

15. An effective expatriate adjusts solely from the physiological perspective.

             False; Easy

16. Expatriation is the process of helping employees make the transition to their home country.

             False; Easy

17. A localized compensation strategy is a pay banding system based on regions.

             True; Easy

1. An overseas premium is an extra amount paid to an expatriate for accepting an overseas assignment.

             True; Easy    

2. The advantage to codetermination is the sharing of power throughout all levels of the organization.

             True; Easy

3. Foreign tax credit is a mechanism which requires the expatriate to file tax returns in the home country as well as in the host country.

             False; Easy

Multiple Choice questions

Section One

4. _____ occurs when a business relocates or moves some or part of its operations to another country.
5. Licensing
6. Offshoring
7. Franchising
8. Insourcing
9. Greenfield venturing

b; Easy

5. _____ involves contracting with another company to perform some business-related task.
6. Franchising
7. Greenfield venturing
8. Co-working
9. Outsourcing
10. Licensing

d; Easy

6. A company decides to contract its payroll services to a local financial organization. This is an example of _____.
   1. offshoring
   2. co-working
   3. outsourcing
   4. licensing
   5. franchising

c; Easy