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Chapter 1 Beat the Clock Multiple Choice Page 1 of 23

Beat the Clock


Chapter 1 INTRODUCTION

1. An international student that goes to work for an MNE in the country where she is
studying is a
a) PCN
b) HCN
c) TCN
d) not enough information
(d)
If she is an Australian studying in the UK, and the MNE is Australian, she would be a PCN.
If the MNE is UK-based, then she would be a TCN.
See p. 3.

2. If a person goes to work for a foreign-based MNE in the country he was born, then he is
a
a) PCN
b) HCN
c) TCN
d) not enough information
(b)
He is a HCN, a host country national, by definition of HCN.
See p. 3.

3. What type of expatriate is a MNE most likely to have if it is starting to go international


after many years of domestic market bliss?
a) PCN
b) HCN
c) TCN
d) not enough information
(a)
PCN, because a PCN carries less risk as far as already knowing the company culture and
expectations.
See p. 7.

4. New behaviors and customs can cause expatriates to become psychologically


disoriented. They are experiencing
a) Laurent’s first step to true IHRM
b) culture shock
c) global mindset
d) negative host country feelings
(b)
This is a symptom of culture shock. They may or may not have negative feelings about
the host country depending on how they deal with their psychological disorientation.
See p. 9.

5. An MNE is this kind of industry when its competitive position in one country is
significantly influenced by its position in other countries.
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a) international
b) multidomestic
c) global
d) networked
(c)
This MNE is a global industry by definition.
See p. 11.

6. The index of transnationality is an indication of an MNE’s


a) reliance on home market
b) foreign to total assets ratio
c) foreign to total employment ratio
d) all of the above
(d)
All of the above are true by definition of the index of transnationality.
See p. 12.

7. Which of these do NOT moderate differences between domestic HRM and IHRM?
a) inherent complexity of IHRM
b) cultural context of IHRM
c) transnationality index
d) differences in employee productivity
(d)
(a), (b), and (c) are three of the five moderating variables for the differences between
IHRM and domestic HRM, described in figure 1.3. (d) has to do with employee
productivity, which is something both domestic and international HRM must do.
See p. 9.

8. “What you do, where you do it, and with who” is a nice way to remember
a) Stahl-Björkman-Morris definition of IHRM
b) Morgan’s 3-D definition of IHRM
c) different IHRM approaches
d) three IHRM employee types
(b)
What you do = HR activities
Where you do it = host, parent, or other country
With who you do it = HCNs, PCNs, and TCNs

It could be argued that (d) is a way for understanding the difference between PCNs,
HCNs and TCNs, except for the “what you do” parameter, which any employee type can
do.
See pp. 2-4.

9. Which of the following is NOT a distinctively IHRM activity?


a) international relocation
b) international taxation
c) recruitment and selection
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d) language translation
(c)
Domestic HRM does recruitment and selection as well.
See p. 5.

10. “MNEs become more alike as they discover universal HRM best practices” is an example
of
a) the convergence hypothesis
b) the divergence hypothesis
c) a Laurent step to true IHRM
d) None of these
(a)
See p. 10.

11. An international student goes to work for a Brazilian MNE in Brazil where he has been
studying. He is a
a) parent-country national (PCN)
b) host-country national (HCN)
c) third-country national (TCN)
d) not enough information
(c)
See p. 3.

12. If an international student returns to her country of origin and works for an MNE whose
headquarters is in the country where she studied, then she is a
a) PCN
b) HCN
c) TCN
d) not enough information
(b)
She is a host-country national (HCN), by definition of HCN.
See p. 3.

13. If a person works on a ship for a cruise line headquartered in the country where he was
born and resides, then he is a
a) PCN
b) HCN
c) TCN
d) not enough information
(a)
See p. 3.

14. An MNE is this kind of industry when competition in one country is essentially
independent of competition in other countries.
a) international
b) multidomestic
c) global
Chapter 1 Beat the Clock Multiple Choice Page 4 of 23

d) networked
(b)
This MNE is a multidomestic industry by definition.
See p. 11.

15. The convergence hypothesis is an example of


a) a culture-specific approach to management principles on management research
b) a culture-common approach to management principles in management research
c) the study of macrolevel variables
d) the study of microlevel variables
(b)
The convergence hypothesis is a well-known example of an imposed “etic” approach
that assumes that there are principles of management that transcend national
boundaries.
See p. 10.

16. Which senior managers may assume a greater deal of transferability between domestic
and international HRM practices?
a) Senior managers of MNEs with large domestic markets
b) Senior managers with little international experience
c) Senior managers with successful careers built on domestic experience
d) All of these
(d)
Senior managers with little international experience, large domestic markets, or
successful careers built on domestic experience are all more susceptible to assuming
that there is greater transferability between domestic and international HRM practices,
because domestic management is more of what they know.
See p. 14.

17. The psychological contract between an MNE and which type of employee tends to be
with his or her entire family:
a) PCN working abroad
b) HCN
c) TCN working abroad
d) Both (1) and (3)
(d)
Both types of expatriates (parent country nationals and third country nationals working
abroad) tend to take their immediate families with them to live and work abroad, so the
pyschological contract with their MNE tends to be with their entire immediate families.
See p. 7.

18. Laurent’s steps for a truly international conception of HRM involve each of the following
EXCEPT:
a) An MNE’s explicit recognition that its HRM reflects some assumptions and values of
its home culture.
b) An MNE’s explicit recognition that its ways are neither universally better or worse
than others.
Chapter 1 Beat the Clock Multiple Choice Page 5 of 23

c) A genuine believe that more effective ways of managing people can result from cross-
cultural learning.
d) An MNE should focus more on behaviors over states of mind and mindsets.
(d)
The first three choices are three of Laurent’s five steps for a truly international
conception of HRM. All five steps actually have more to do with states of mind and
mindsets over particular behaviors, excactly the opposite of choice (d).

19. Macroenvironmental factors that may influence MNEs include each of the following
EXCEPT:
a) political factors
b) enterprise factors
c) sociological factors
d) technological factors
(b)
The macroenvironmental factors can be remembered with the acronomyms PEST, or
PESTLE which include economic, legal, and environment fators as well, but not
enterprise.
See p. 14.

A key contrast between international and domestic human resource management is:
a) complexity in operating in different countries
b) complexity in employing different national categories of employees
c) both (1) and (2)
d) the major differerences between the HR activities performed.
(c)
See p. 17
Beat the Clock
Chapter 2 THE CULTURAL CONTEXT OF IHRM

1. When a culture treats time as one thing after another


a) time dimension
b) monochrome time
c) polychrome time
d) time concept
(b)
See p. 37.

2. Which of these countries does NOT have a high context culture?


a) Germany
b) France
c) Japan
d) China
(a)
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German culture is more direct, to the point.


See p. 36.

3. Spatial orientation is a cultural measurement of ____ during speaking


a) room awareness
b) space needed for gestures
c) where eyes look
d) distance between people
(d)
See p. 36.

4. Which of these Trompenaar dimensions distinguishes between cultures that


believe more in absolute or relative truths?
a) specific vs. diffuse
b) emotional vs. neutral
c) individualism vs. communitarianism
d) universalism vs. particularism
(d)
See p. 35.

5. Which of these GLOBE study dimensions explains why high-performance


might not be rewarded much in certain cultures?
a) gender egalitarianism
b) assertiveness
c) performance orientation
d) humane orientation
(c)
It may be that a given culture values personal connections or formal studies
more.
See p. 34.
6. In-group collectivism is the degree to which individuals express pride,
loyalty, and cohesiveness in their
a) individual work
b) organizations or families
c) donations to charity
d) none of the above
(b)
See p. 34.
Chapter 1 Beat the Clock Multiple Choice Page 7 of 23

7. Which of these is NOT a criticism of the Hofstede study?


a) could not be replicated
b) mixed practice with values
c) sex and classes ignored
d) interaction between variables ignored
(a)
The replications of the Hofstede study were actually quite impressive
because the results were highly consistent.
See pp. 32-33.

8. In societies high on gender egalitarianism


a) roles are highly gender-defined
b) women and men advance equally
c) women advance more
d) men advance more
(b)
See p. 34.

9. In countries with this cultural context, employees tend to prefer fixed


compensation packages.
a) high uncertainty avoidance
b) low uncertainty avoidance
c) high collectivism
d) high individualism
(a)
See TABLE 2.1 on p. 32.

10. Short term cultures are characterized by


a) high savings rates
b) persistence in pursuing goals
c) ranking based on status
d) expectations of quick profit
(d)
There are other characteristics, but expecting a quick profit is one of them.
See p. 30.

11. Which researcher(s) labeled culture as ‘Software of the Mind’?


a) Kluckhohn and Kroeber
b) Hosftede
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c) Schein
d) Trompenaars and Hampden-Turner
(b)
See p. 24.
12. Which researcher(s) defined three levels of culture: artefacts, values, and
underlying assumptions?
a) Kluckhohn and Kroeber
b) Hosftede
c) Schein
d) Trompenaars and Hampden-Turner
(c)
See p. 24.
13. The goals of cross-cultural management studies include each of these
EXCEPT:
a) determining how to cause organizational behavior to become the same
across countries and cultures
b) description of organizational behavior within countries and cultures
c) comparison of organizational behavior within countries and cultures
d) explanation and improvement of employee, customer, suppliers, or
business partner interactions in different countries and cultures
(a)
(a) is more of an example of the convergence hypothesis approach from
chapter 1 that imposes the notion that the parent country’s ways are
better. The key notion in cross-cultural management research is that cross-
cultural differences can lead to more creative and effective ways of doing
things.
See p. 23 in chapter 2 and Laurent’s steps for truly international HRM on p.
12 of chapter 1.

14. ________ is the degree to which members of a collective expect power to


be distributed equally.
a) Uncertainty Avoidance
b) Power Distance
c) Assertiveness
d) Performance Orientation
(b)
See p. 34.
15. ________ is the degree to which a collective encourages and rewards group
Chapter 1 Beat the Clock Multiple Choice Page 9 of 23

members for performance improvement and excellence.


a) Uncertainty Avoidance
b) Power Distance
c) Assertiveness
d) Performance Orientation
(d)
See p. 34.
16. According to Gerhart, most of the variance in cross-cultural management
studies results come from
a) individual manager-specific differences
b) organization-specific differences
c) country-specific differences
d) cultural differences
(c)
According to Gerhart, in the GLOBE study, 23% of the variance is from
country-level differences and only 6% is actually due to cultural differences.
See p. 37.

17. Publicly rewarding a specific employee’s performance might be seen poorly


by the employee and others because of which cultural dimension?
a) power distance
b) uncertainty avoidance
c) femininity vs. masculinity
d) individualism vs. collectivism
(d)
See pp. 28-29.

18. A long-term culture is characterized by each of the following EXCEPT:


a) low savings rates
b) respect for social and status obligations within certain limits
c) high investment activity
d) readiness to subordinate oneself to a purpose
(a)
See p. 30
19. According to the Hofstede study, which of these countries did NOT exhibit a
small power distance?
a) New Zealand
b) Phillipines
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c) Great Britain
d) USA
(b)
See FIGURE 2.1 on p. 31.

Female managers are rare where which of these cultural dimensions is lowest?
a) in-group collectivism
b) uncertainty avoidance
c) gender egalitarianism
d) individualism
(c)
See p. 32.
Beat the Clock
Chapter 3 THE ORGANIZATIONAL CONTEXT

1. Which of these does NOT drive global standardization?


a) firm size
b) corporate culture
c) cultural environment
d) strategy and structure
(c)
See Figure 3.2 on p. 49.

2. HRM should be locally responsive to respect local ____ regarding HRM and
work practices.
a) cultural values
b) government policies
c) education systems
d) all of the above
(d)
See p. 48.

3. When institutions affect the shape of an MNE’s headquarters


a) country-of-origin effect
b) host-country effect
c) home-country effect
d) none of these
(c)
See pp. 51-52.
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4. Cultures where work is based on more integrated personal social


relationships may value
a) balance of intrinsic and extrinsic rewards
b) more intrinsic rewards
c) more extrinsic rewards
d) less explicit rewards
(a)
See p. 50.

5. In which of these settings are employees more likely to resist wearing


company-branded clothing?
a) HCNs in a Japanese plant in the USA
b) Chinese in a Japanese plant in Taiwan
c) Chinese in a Japanese plant in Japan
d) PCNs working for USA company abroad
(b)
See p. 51.

6. When the host country influences practices at headquarters


a) reverse diffusion
b) host-country effect
c) home-country effect
d) parent-country effect
(a)
See p. 52.
7. MNEs which are international from their inception are
a) networked
b) matrix
c) heterarchy
d) born global
(d)
See p. 57.

8. The top management’s role in a heterarchy is


a) monitor and control
b) resource allocator
c) catalyst and architect
d) cheerleader
(c)
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See p. 65.

9. An MNE where resources and responsibilities are shared across national


boundaries
a) transnational
b) heterarchy
c) networked
d) matrix
(a)
See p. 65.

10. MNE corporate control mechanism is based on network of personal


relationships
a) corporate culture
b) social capital
c) indirect control
d) direct control
(b)
See p. 71.

11. Which of these is probably the most culture-bound resource of an MNE in


an international context?
a) money
b) inventory
c) know-how
d) people
(d)
See p. 48.

12. As an enterprise starts to go international, what kind of employees tend to


be the first to oversee the successful implementation of appropriate work
practices?
a) local staff
b) PCNs
c) HCNs
d) TCNs
(b)
Parent-country national expatriates, because these are the ones that are
more likely to have absorbed the corporate culture and for a longer time.
See p. 48.
Chapter 1 Beat the Clock Multiple Choice Page 13 of 23

13. The aim of global standardization of HRM practices is to achieve _______ of


a geographically dispersed workforce around common principals and
objectives.
a) consistency
b) transparency
c) alignment
d) all of the above
(d)
See page 48.

14. The exact balance of a firm’s HRM standardization-localization choice is


based on
a) strategy and structure
b) firm size
c) maturity
d) all of the above
(d)
See page 48.

15. Which of these does NOT drive the localization of HRM in MNEs?
a) corporate culture
b) institutional environment
c) firm size
d) firm maturity
(a)
See Figure 3.2 on p. 49.

16. Based on their view of a MNE as a network, Gupta and Govindarajan give
the highest importance to
a) capital
b) products
c) services
d) knowledge flows
(d)
See p. 54.

17. Subsidiaries characterized as ______ provide significant knowledge for


other units and have gained importance as MNEs move towards the
transnational model.
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a) local innovator
b) global innovator
c) implementer
d) integrated player
(b)
See pp. 54-55.

18. Subsidiaries with the _____ role engage in the creation of relevant
country/region-specific knowledge in all key functional areas because they
have complete responsibility.
a) local innovator
b) global innovator
c) implementer
d) integrated player
(d)
See pp. 54-55.

19. The opposite of the reverse diffusion institutional effect on a MNE is the
a) home-country effect
b) host-country effect
c) country-of-origin effect
d) local responsiveness effect
(c)
See FIGURE 3.3 and the rest of p. 52.

20.An MNE that has adopted the _____ organization structure is characterized
by an interdependence of resources and responsibilities across all business
units regardless of national boundaries.
a) matrix
b) mixed structure
c) heterarchy
d) transnational
(d)
See pp. 62, 65.
Beat the Clock
Chapter 4 IHRM IN CROSS-BORDER MERGERS AND ACQUISITIONS,
INTERNATIONAL ALLIANCES, AND SMEs

1. Most successful international SME HR strategies have involved


a) outsourcing HRM
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b) sharing IHRM with larger MNEs


c) both of the above
d) in-house reduced staff HRM
(c)
See p. 99.

2. In this stage of a M&A, the M&A steering team is formed and educated on
people issues.
a) pre-M&A
b) due diligence
c) integration planning
d) implementation
(a)
See p. 87 and FIGURE 4.4.

3. At this stage of a M&A, HR compatibility and cultural issues are identified


and assessed.
a) pre-M&A
b) due diligence
c) integration planning
d) implementation
(b)
See pp. 87-88 and FIGURE 4.4.

4. At this stage of a M&A, a staffing plan and culturally sensitive


communication strategies are developed.
a) pre-M&A
b) due diligence
c) integration planning
d) implementation
(c)
See pp. 87-88 and FIGURE 4.4.

5. At this stage of a M&A, HR ensures capture of synergies with incentives and


manages ongoing cultural change.
a) pre-M&A
b) due diligence
c) integration planning
d) implementation
(d)
Chapter 1 Beat the Clock Multiple Choice Page 16 of 23

See pp. 87-88 and FIGURE 4.4.

6. Which of the following is NOT a conceptual tool for strategic HRM in M&As?
a) resources
b) environments
c) processes
d) values
(b)
See p. 88.

7. Which of these skills is important for expatriate success in the acquired firm
of an acquisition?
a) language skills
b) intercultural competence
c) industry experience
d) all of the above
(d)
See pp. 88-89.

8. Training and development are most extensive for MNEs from


a) Germany
b) Japan
c) UK
d) USA
(d)
See p. 89.

9. The compatibility between the IJV partners is most important when it


comes to
a) formation of the IJV
b) mutual learning opportunities
c) development and implementation
d) advancement of IJV
(b)
See p. 92.

10. In this role during IJV formation, an HR manager should identify talent for
executing IJV strategies.
a) partnership
Chapter 1 Beat the Clock Multiple Choice Page 17 of 23

b) change facilitator and strategy implementer


c) innovator
d) collaborator
(c)
See p. 92.

11. In this role during IJV formation, an HR manager should take the needs of all
stakeholders into account.
a) partnership
b) change facilitator and strategy implementer
c) innovator
d) collaborator
(a)
See p. 92.

12. In this role during IJV formation, an HR manager should conceptualize and
implement new strategies involving trust-based communication and co-
operation with relevant partners.
a) partnership
b) change facilitator and strategy implementer
c) innovator
d) collaborator
(b)
See p. 92.
13. Which of these is NOT a top ten barrier for SMEs internationalizing their
operations?
a) shortage of working capital to finance exports
b) lack of managerial time to deal with internationalization
c) inadequate quantity of and/or untrained personnel for
internationalization
d) inflexible corporate culture
(d)
See top ten list on p. 95.

14. What is the number one barrier to international market access for an SME?
a) shortage of working capital to finance exports
b) lack of managerial time to deal with internationalization
c) inadequate quantity of and/or untrained personnel for
internationalization
d) inflexible corporate culture
Chapter 1 Beat the Clock Multiple Choice Page 18 of 23

(a)
See top ten list on p. 95.

15. In which of these economies do SMEs form more than 99% of the
enterprises?
a) European Economic Area (EEA)
b) Asia-Pacific Region
c) USA
d) Southern Common Market (MERCOSUR)
(a)
See p. 95.

16. In the USA _____ of total employment is with organizations with fewer than
20 employees.
a) under 20%
b) 50%
c) 60%
d) over 80%
(d)
See p. 95.

17. By definition, the number of people that work for a small enterprise is
a) < 20
b) < 50
c) < 100
d) < 250
(b)
See p. 95 and TABLE 4.1.

18. By definition, the number of people that work for a medium-sized


enterprise is
a) < 20
b) < 50
c) < 100
d) < 250
(d)
See p. 95 and TABLE 4.1.

19. During an IJV, Kabst calls the key management positions the parent firms
compete for
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a) functional gatekeepers
b) strategy implementers
c) innovators
d) collaborators
(a)
See p. 92.

20. Performance-related pay is more popular in the USA than in


a) Japan
b) Germany
c) both Japan and Germany
d) none of the above
(c)
See p. 89.
Beat the Clock
Chapter 5 SOURCING HUMAN RESOURCES FOR GLOBAL MARKETS – STAFFING, RECRUITMENT, AND SELECTION

1. Culture-specific knowledge is
a) affective dimension
b) cognitive layer
c) intercultural competence
d) cultural intelligence
(b)
See p. 129.

2. In this approach to staffing, employees may move out of their home countries, but only within a particular
geographic region.
a) ethnocentric
b) polycentric
c) geocentric
d) regiocentric
(d)
See p. 112.

3. Which is an advantage of international staffing with a PCN?


a) more organizational control
b) salary is relatively lower
c) no language barrier
d) no work permit is required
(a)
See TABLE 5.1 on p. 113.

4. Which is a disadvantage of international staffing with a PCN?


a) limited promotions
b) longer adaptation time
c) has special skills
d) better training
(b)
See TABLE 5.1 on p. 113..

5. Which is an advantage of international staffing with a HCN?


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a) premium pay
b) no language barrier
c) better HQ control
d) global mindset
(b)
See TABLE 5.1 on p. 113.

6. Which is a disadvantage of international staffing with a HCN?


a) lowers morale with PCNs
b) host government resentment
c) premium pay
d) limited advancement elsewhere
(d)
See TABLE 5.1 on p. 113.
Chapter 1 Beat the Clock Multiple Choice Page 21 of 23

7. A company hires PCNs when the foreign culture is distant. Which determinant applies?
a) context specificities
b) company specificities
c) local unit specificities
d) IHRM practices
(a)
See pp. 113-114.

8. A new M&A subsidiary is staffed with an expert TCN because of its strategic importance. Which
determinant applies?
a) context specificities
b) company specificities
c) local unit specificities
d) IHRM practices
(c)
See pp. 113-114.

9. This type of international assignment requires specific skills and lasts 6-12 months on specific projects.
a) contractual
b) rotational
c) commuter
d) virtual
(b)
See pp. 117-118.

10. Expatriates that gather information, bridging internal and external contexts are
a) language nodes
b) agents of socializing
c) network builders
d) boundary spanners
(d)
See p. 120

11. A popular term for a non-expatriate is


a) road warrior
b) globetrotter
c) flexpatriate
d) all of the above
(d)
See p. 121.

12. Which of these is NOT a stressor relating to the management of international business travelers.
a) home and family issues
b) foreign residency
c) travel logistics
d) health concerns
(b)
International business travelers do not need to apply for residency in the countries they are visiting.
See pp. 121-122.
Chapter 1 Beat the Clock Multiple Choice Page 22 of 23

13. Which of these moderators may prove to be the greater barrier to mobility for female expatriates?
a) home and family issues
b) health concerns
c) dual career issues
d) host-culture issues
(c)
Males are more reluctant to accompany their spouse/partner.
See pp. 121, 138.

14. Which of these is a direct cost of expatriate failure?


a) loss of market share
b) relocation expenses
c) difficulty with host-government officials
d) demands that expatriates be replaced with HCNs
(b)
See p. 127.

15. Expatriates that assist in the transfer of shared values and beliefs are
a) language nodes
b) agents of socializing
c) network builders
d) boundary spanners
(b)
See p. 119.

16. Expatriates that work as ‘spiders’ developing their web of personal relationships as they move between
various organizational units
a) language nodes
b) agents of socializing
c) network builders
d) boundary spanners
(c)
See p. 119.

17. According to the Brookfield Study (2015), what is the single most factor in retaining employees after an
international assignment?
a) good international candidate selection
b) spouse/partner satisfaction with the assignment
c) career and talent management before, during, and after the assignment
d) the assignee’s ability to adapt
(c)
See p. 128.

18. Which of the following is NOT a factor in expatriate selection?


a) technical ability
b) cross-cultural suitability
c) language
d) all of the above
(d)
See p. 128.
Chapter 1 Beat the Clock Multiple Choice Page 23 of 23

19. _______ focuses capabilities to grasp, reason, and behave effectively in culturally diverse situations.
a) cultural intelligence
b) intercultural competence
c) intercultural sensitivity
d) global mindset
(a)
See p. 129.

20. _______ is the ability to appreciate elements of various cultures.


a) cultural intelligence
b) intercultural competence
c) intercultural sensitivity
d) global mindset
(d)
See p. 129.

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