Lussier and Hendon, Human Resource Management, Second Edition Instructor Resource

Answers to Applying the Concept Exercises

Applying the Concept 16-1: Stages in Corporate Globalization

Place the letter of the state of corporate globalization on the line next to the corresponding
description of each firm.

a. domestic
b. international
c. multinational
d. transnational

1. Our company exports our books to other countries through our website in America.
B. International. Doing business through importing and exporting is characteristic of an
international business

2. Our company opened its third factory overseas to better serve our customers in those
countries.
C. Multinational. Owning operating facilities in multiple countries is characteristic of MNCs.

3. Just because we only do business in one country doesn’t mean we don’t compete with global
companies.
A. Domestic. Doing business in only one country is characteristic of a domestic business.

4. Our company prides itself on not having any geographical boundaries or barriers, as we
conduct business globally.
D. Transnational. Doing business without geographic barriers is characteristic of a
transnational business.

5. We import tires from Japan and sell them in America.

B. International. Doing business through importing and exporting is characteristic of an
international business

Applying the Concept 16-2: GLOBE Dimensions

Place the letter of the dimension of cultural diversity on the line next to the statement
exemplifying it.

a. assertiveness
b. future orientation
c. gender differences
d. uncertainty avoidance
Lussier and Hendon, Human Resource Management, Second Edition Instructor Resource

e. power distance
f. societal collectivism
g. in-group collectivism
h. performance orientation
i. humane orientation

6. The people seem to prefer sports like soccer and basketball to sports like golf and track-and-
field.
F. Societal collectivism. The preferred sports are team sports rather than individual sports.

7. Managers place great importance on status symbols such as the executive dining room,
reserved parking spaces, and big offices.
E. Power distance. Status symbols represent and show power distance.

8. Managers provide poor working conditions.

I. Humane orientation. Providing poor working conditions shows low caring toward people.

9. Employees get nervous and stressed when changes are made.

D. Uncertainty avoidance. They fear the uncertainty and uncomfortable feeling change brings.

10. Incentives motivate employees to achieve high levels of success.

H. Performance orientation. The statement illustrates high achievement and material success.
You cannot tell if the incentives are individual or collective rewards.

Applying the Concept 16-3: Global Staffing

Place the letter of the type of staffing on the line next to each example statement.

a. ethnocentric
b. polycentric
c. geocentric

11. I work for the American company GM, but I live in China and have been promoted to a
management position.
B. Polycentric. GM is electing to have a Chinese employee take the management position for
their host country.

12. I work for the Japanese company Toyota, and they are sending me to America to fill a high-
level management position.
A. Ethnocentric. Sending a person from the home country to another country is typical of
ethnocentric firms.

13. I’m French, but I work for American IBM in England, and they are sending me to work in
Germany.
Lussier and Hendon, Human Resource Management, Second Edition Instructor Resource

C. Geocentric. Sending a person from a third-country to a new country is typical of geocentric

firms.

14. I’m American and work for US Google, and I’ve already worked in two different European
countries, and now they are sending me to China.
C. Geocentric. Sending a person to multiple countries is a typical of a third-country geocentric
firm.

15. I’m Australian and work for an Australian company, but I am looking forward to my transfer
to work in America.
A. Ethnocentric. Sending a person from the home country to another country is typical of
ethnocentric firms.

Applying the Concept 16-4: Global Compensation

Place the letter of the type of compensation on the line next to the corresponding example.

a. balance sheet
b. split-pay
c. negotiation
d. localization
e. lump sum

16. I’m going overseas for a 6-month assignment, and they are giving half the money in US
dollars and half in euros.
B. Split pay. The pay is split between two currencies.

17. I’m going overseas for a 6-month assignment, and they are paying me in the other country’s
currency, the euro.
D. Localization. Being paid in euos is the local currency.

18. I’m going overseas for a 6-month assignment, and they are continuing to pay me in euros, but
they are also giving me a US dollar allowance for the higher cost of living in New York.
A. Balance sheet. Being paid the home currency with an allowance to maintain the standard of
living is the balance sheet approach.

19. I’m going overseas for a 6-month assignment, and we are having a meeting to discuss my
compensation for while I’m away.
C. Negotiation. The meeting to discuss pay will be a negotiation.

20. I’m going overseas for a 6-month assignment, and they are giving me one check to pay for
the entire time I’m away.
E. Lump sum. Getting just one pay check is a lump sum.