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Chapter 16
Managing Human Resources Globally
True / False Questions
1. The trends and arrangements that encourage international trade decrease the
demands on human resource management.
True False
2. A host country is a country, other than the parent country, in which an organization
operates a facility.
True False
3. Expatriates are employees from a country other than the parent country or the host
country.
True False
4. The usual way that a company begins to enter foreign markets is by exporting, or
shipping, domestically produced items to other countries to be sold there.
True False
5. While international companies go overseas on a broader scale, multinational

companies build one or a few facilities in another country.
True False
6. Cultural differences are a disadvantage to global organizations.
True False
7. The most important influence on international HRM is the culture of the country in
which a facility is located.
True False
8. In countries with large power distances, people address one another with first
names.
True False
9. High uncertainty avoidance refers to a strong cultural preference for structured
situations.
True False
10. Power distance concerns the way the culture deals with unequal distribution of
power.
True False
11. Educational opportunities remain constant from one country to another.
True False
12. Ample opportunities for educational development are provided in capitalist economic
systems because education is free for students.
True False
13. A country's political system does not usually affect human resource management.
True False
14. Compared with other countries, the United States allows employers much latitude in
reducing their workforce.
True False
15. Companies usually prefer hiring third-country nationals for filling positions in host-
countries.
True False
16. Most organizations' expanding opportunities in fast-developing nations have limited

their ability to tap into the immigrant workforce.
True False
17. According to research, employees who are extroverted, agreeable, and conscientious
are most successful at completing overseas assignments.
True False
18. Even if employees persist and continue learning about their host country's culture,
they rarely recover from culture shock.
True False
19. While training expatriates, trainers are expected to be authoritarian and controlling of
session in cultures low in power distance.
True False
20. A culture with a long-term orientation will have trainees who are likely to accept
development plans and assignments.
True False
21. The specific methods of performance management that work in one country may fail
in another, while general principles of performance management may apply in most
countries.
True False
22. European companies usually link stock options to specific performance goals, such as
the increase in a company's share price compared with that of its competitors.
True False
23. U.S. organizations exert more centralized control over labor relations in the various
countries where they operate when compared with European organizations.
True False
24. Cross-cultural training requires developing a greater awareness of one's own culture,
too.
True False
25. The balance sheet approach for determining expatriate compensation adjusts the
manager's compensation so that it gives the manager the same standard of living as
in the home country plus extra pay for the inconvenience of locating overseas.
True False
Multiple Choice Questions

26. Which of the following agreements have been adopted by Canada, Mexico, and the
United States to encourage trade between the three countries?
A. CSN
B. NAFTA
C. PICTA
D. APEC
E. TAFTA
27. Peter, a British citizen, and Keith, a U.S. citizen, are employees of an electronics
manufacturing company headquartered in London. While Peter works out of the
London office, Keith operates out of the marketing unit in New York. Which of the
following statements is true in this scenario?
A. Peter is a host-country
national.
B. Peter is a parent-country
national.
C. Peter and Keith are
expatriates.
D. Keith is a third-country
national.
E. Keith is a home-country
national.
28. Gerard is an Australian citizen and works at the headquarters of an Australian

company. This would make him a _____.
A. host-country
national
B. expatria
te
C. governing-country
national
D. third-country
national
E. parent-country
national
29. Which of the following refers to the nation other than the one in which the
organization's headquarters is located, where the organization operates a facility?
A. Host
country
B. Parent
country
C. First
country
D. Third
country
E. Guest
country
30. Sergio, a Spanish national, is an employee at a U.S. company. He works at the

company's branch in Spain. This would imply that Sergio is a:
A. host-country
national.
B. parent-country
national.
C. first-country
national.
D. third-country
national.
E. guest-country
national.
31. Thomas, a South African, is employed by a pharmaceutical company whose

headquarters is in Philadelphia. Thomas operates out of the firm's production facility
in Cape Town, South Africa. Thomas is considered to be a(n):
A. parent-country
national.
B. third-country
national.
C. host-country
national.
D. repatriat
e.
E. expatriat
e.
32. A company is unlikely to have a facility in a:
A. parent
country.
B. host
country.
C. third
country.
D. home
country.
E. first
country.
33. Which of the following statements best defines an international organization?
A. An organization that builds facilities in a number of different countries in an effort

to minimize distribution costs.
B. An organization that builds facilities in a number of different countries in an effort
to minimize production costs.
C. An organization that sets up one or a few facilities in one or a few foreign
countries.
D. An organization that exports goods to more than a few
countries.
E. An organization that exports goods to a number of different
countries.
34. Which of the following statements best describes a multinational company?
A. An organization that builds facilities within the same country to facilitate large-
scale exports to various countries.
B. An organization that builds facilities in a number of different countries in an effort
to minimize production and distribution costs.
countries.
D. An organization that operates from one country and has customers from all
over the globe.
E. A domestic organization that chooses to locate a facility using cultural differences
as an advantage.
35. A company with _____ level participation is likely to have a single office, the
headquarters, in the parent country.
A. internatio
nal
B. multinatio
nal
C. glob
al
D. domest
ic
E. transnation
al
36. Which of the following refers to a country that is neither the parent country nor the
host country of a company?
A. First
country
B. Facilitating
country
C. Governing
country
D. Third
country
E. Guest
country
37. Which of the following terms would accurately describe an individual who was born in
the United States and is currently working in Germany for a company headquartered
in China?
A. Parent-country
national
B. Host-country
national
C. Third-country
national
D. Home-country
national
E. Guest-country
national
38. James, an American who works for a U.S.-based company, has been sent to England
for a work assignment. James would be known as a(n):
A. expatriat
e.
B. repatriat
e.
C. host-country
national.
D. third-country
national.
E. guest-country
national.
39. A company, which has its headquarters in Japan, has branches in the United States. A
Pakistani manager works in a facility in the United States. In this scenario, Japan is
the _____ country and Pakistan is the _____ country.
A. parent;
third
B. expatriate;
host
C. host;
guest
D. third;
first
E. parent;
host
40. John and Henry are U.S. citizens and work for the same law firm that is
headquartered in New York. John, however, works from the firm's London office, while
Henry works from the office in New York. Which of the following is a difference
between the two employees?
A. John is an expatriate, whereas Henry is a parent-country

national.
B. John is a host-country national, whereas Henry is an
expatriate.
C. John is a third-country national, whereas Henry is a host-country
national.
D. John is a parent-country national, whereas Henry is a host-country
national.
E. John is repatriate, whereas Henry is a third-country
national.
41. Which of the following is the usual way in which companies first enter foreign
markets?
A. Importi
ng
B. Offshorin
g
C. Exportin
g
D. Outsourci
ng
E. Relocatin
g
42. Which of the following organizations is most likely to locate a facility based on the
ability to effectively, efficiently, and flexibly produce a product or service, using
cultural differences as an advantage?
A. Foreign
subsidiaries
B. International
organizations
C. Multinational
organizations
D. Global
organizations
E. Domestic
organizations
43. Which of the following statements is true about cultures with a long-term
orientation?
A. They have a tendency to look down upon those who invest in

savings.
B. They prefer jobs that are relaxed and easy and detest
hard work.
C. They focus primarily on cultural values that fulfill obligations in
the present.
D. They promote respect for those who are good at achieving
immediate results.
E. They focus primarily on cultural values that tend to pay off in
the future.
44. Joanne and Patrick work for two different corporations. Joanne's company is very
structured, follows rigid rules, and expects employees to behave in a certain manner.
Patrick's company is a little more relaxed, and they tend to take each day as it
comes. Which of the following cultural differences contributes to this difference in the
way these corporations operate?
A. Joanne's company is high in feminine culture, whereas Patrick's company is high in

masculine culture.
B. Joanne's company functions with a low power distance, whereas Patrick's company
functions with high power distance.
C. Joanne's company functions at an individualistic level, whereas Patrick's company
functions at a collectivist level.
D. Joanne's company functions with short-term orientation, whereas Patrick's
company functions with a long-term orientation.
E. Joanne's company functions with a high uncertainty avoidance, whereas Patrick's
company functions with low uncertainty avoidance.
45. Sarah works at an organization that places high emphasis on relationships, service,
care for the weak, and preserving the environment. Sarah's workplace would be
viewed as one that places emphasis on the qualities that are considered high in
_____.
A. feminini
ty
B. masculini
ty
C. power
distance
D. individualis
m
E. capitalis
m
46. Dev and Emily are employees of a publishing house and work together on the same
team. Dev believes that Emily hails from an individualistic culture, while Emily
disagrees. Which of the following, if true, would strengthen Dev's argument?
A. Emily prioritizes helping her team members attain their career

advancement goals.
B. Emily focuses on self-development and puts her needs before those of
the group.
C. Emily places emphasis on achieving upward social mobility by fulfilling
common goals.
D. Emily prefers decision making through her team members' participation in
management.
E. Emily's traits are typical of those from cultures that expect protection from the
community.
47. Jerome believes that the key to effective management is to involve his team
members in the firm's decision-making process. He prefers structured meetings and
detailed plans that include everything from immediate goals to objectives for the
next decade. In this case, Jerome's thoughts reflect that of a person with:
A. an individualistic
nature.
B. a collectivist
nature.
C. high power
distance.
D. low uncertainty
avoidance.
E. a short-term
orientation.
48. Katie and Nate are employees of an investment bank based in Chicago. Katie is of the
opinion that the qualities Nate exhibits reflect an individual rather than a masculine
culture. Which of the following, if true, would strengthen Katie's beliefs?
A. Nate places more emphasis on a healthy superior-subordinate

relationship.
B. Nate places more emphasis on initiatives pertaining to corporate social
responsibility.
C. Nate places more emphasis on being ahead of the crowd and
achieving goals.
D. Nate places more emphasis on initiatives involving the conservation of the
environment.
E. Nate places more emphasis on achieving social mobility through
collectivist means.
49. Adrian and Ben are employees of a software development firm in San Francisco. Ben
believes that Adrian exhibits behaviors that resemble those of individuals from
feminine cultures. Which of the following, if true, would weaken Ben's beliefs?
A. Adrian places more emphasis on a harmonious working relationship between

members in his team.
B. Adrian places more emphasis on creating an atmosphere of competition among his
team members.
C. Adrian places more emphasis on undertaking initiatives aimed at mobilizing funds
for the underprivileged.
D. Adrian places more emphasis on undertaking initiatives aimed at preventing
environmental degradation.
E. Adrian places more emphasis on achieving social mobility through
collectivist means.
50. Edward, a U.S. businessman, visits India for a corporate meeting. While interacting
with the board members, he addresses them by their first names, as he does with
board members in the United States. However, the board members in India were
offended by this gesture. Which of the following differences in culture does this
scenario reveal?
A. Individualism/Collectiv
ism
B. Uncertainty
avoidance
C. Power
distance
D. Long-term/Short-term
orientation
E. Masculinity/Femini
nity
51. Tanya works at a retail store in Los Angeles. She addresses her Indian manager, Priya,
by her first name. Tanya's colleague advises against addressing Priya by her name as
she might find it disrespectful. The colleague is most likely right if Priya's belief
reflects that of an individual with:
A. a long-term
orientation.
B. a collectivist
nature.
C. high power
distance.
D. low uncertainty
avoidance.
E. a short-term
orientation.
52. Tiffany, the marketing manager of a mobile phone company, is achievement oriented
and exhibits high levels of assertiveness. She prefers to plan extensively for the
future, treats everyone equally regardless of age or seniority, and doesn't expect
groups to stand up for an individual's rights. Tiffany is most likely to be an individual
whose culture reflects:
A. masculine
traits.
B. a short-term
orientation.
C. high power
distance.
D. low uncertainty
avoidance.
E. collectivist
views.
53. Stephen works as an accountant in the headquarters of a fast food chain. He
encourages his colleagues to participate in an initiative he started that involved
planting trees and flowers on the office's grounds. Stephen's initiative reflects those
of individuals belonging to a culture with:
A. a collectivist
nature.
B. a short-term
orientation.
C. high feminine
traits.
D. high power
distance.
E. low uncertainty
avoidance.
54. Sheena hails from a country whose legal system is based on religious scriptures.
Social and business behaviors are judged based on religious laws and legal codes to a
great extent. Which aspect of culture do these conditions represent?
A. Masculini
ty
B. Time
orientation
C. High uncertainty
avoidance
D. Individualis
m
E. Power
distance
55. Eric's company lays down stringent rules for employees to follow at work. Business
decisions are usually made by teams rather than individuals. And profit making is
given priority over employee satisfaction. The company is at a stage where it
prioritizes quick revenue generation over sustainability. In this case, Eric's company is
most likely to be rated high on:
A. individualis
m.
B. long-term
orientation.
C. femininit
y.
D. uncertainty
avoidance.
E. power
distance.
56. Jenny, a sales executive, believes that her hard work and persistence will reap
rewards in the future. She is not very assertive, prefers to address her seniors by
titles rather than names, prefers to be instructed, and awaits her team's approval
before taking decisions. Jenny is likely to belong to a culture that:
A. is highly
individualistic.
B. has high power
distance.
C. is low on uncertainty
avoidance.
D. is
feminine.
E. is long-term
oriented.
57. Which of the following is a feature of individualistic cultures?
A. It has flatter pay

structures.
B. It exhibits greater differences between the highest and lowest pay in the
organization.
C. It emphasizes on organizational rather than individual
performance.
D. It involves collective decision
making.
E. It has compensation systems based on fixed pay according to
seniority.
58. Identify a true statement about countries with small power distances.
A. People address one another with

titles.
B. People try to eliminate
inequalities.
C. People tend to rely on orders from
superiors.
D. People seem to take each day as it
comes.
E. People value seniority more than
talent.
59. Identify an advantage of having wide latitude in reducing a company workforce.
A. It gives the option of hiring for peak needs and laying off employees if
needs decline.
B. It helps in protecting workers'
jobs.
C. It helps employees adjust to a new
culture.
D. It allows workers to keep more of their earnings regardless of the taxes
they pay.
E. It gives employees the advantage of accumulating many years of work experience
in an organization.
60. Which of the following is an effective recruitment and selection strategy when the
required skills are scarce in a particular location?
A. Host-country
nationals
B. Immigrant
workers
C. Parent-company
nationals
D. Local contract
workers
E. Local temporary
workers
61. Betty, an American, works for an automobile manufacturer in New Jersey. Her
manager, Ruth, sends her on an overseas assignment to handle operations at the
company's newly acquired plant in Japan. Which of the following, if true, could have
most likely led to Betty being chosen for the assignment?
A. Betty lacks tolerance to ambiguity and resists

change.
B. Betty prefers to work in a less challenging work
environment.
C. Betty works best with those from feminine cultures with low
power distance.
D. Betty is insensitive to differences in cultures and
norms.
E. Betty possesses the motivation to succeed and is achievement
oriented.
62. When an expatriate sent on a foreign assignment begins experiencing feelings of

isolation, criticism, stereotyping, and even hostility, he is said to be experiencing
_____.
A. validati
on
B. adjustme
nt
C. recover
y
D. culture
shock
E. repatriati
on
63. Sean, a consultant, was assigned an overseas project in China for a period of two
years. After a period of seven months, Sean's manager decides to bring Sean back to
his home country and replace him with someone else in China. Which of the
following, if true, is most likely to have resulted in this decision?
A. Sean exhibited the ability to effectively communicate in

Mandarin.
B. Sean exhibited a sense of intolerance toward
collectivist ideals.
C. Sean exhibited high levels of extraversion that was required
for the job.
D. Sean exhibited high levels of
cohesiveness.
E. Sean exhibited low levels of disillusionment than other
employees.
64. _____ refers to training employees on overseas work assignments to work through
national and cultural boundaries.
A. Adventure
learning
B. Experiential
learning
C. Validatio
n
D. Cross-cultural
preparation
E. Repatriati
on
65. Roger, an automobile engineer, was sent on a foreign assignment to Spain. Initially,
Roger was fascinated by the culture and history of the town he lived in. Within a
month, he began to feel disillusioned and discomforted by the differences in norms
and values. Which of the following terms best describe this phase of Roger's
experience?
A. Recover
y
B. Culture
shock
C. Honeymo
on
D. Validatio
n
E. Adjustme
nt
66. Ricardo has been selected to work at his firm's manufacturing plant in China. The
training department divides the cross-cultural preparation into three phases. Which of
the following is the training team likely to do during the departure phase of cross-
cultural preparation?
A. They are likely to conduct training sessions that include language

instructions.
B. They are likely to arrange a mentoring program for the assignment
overseas.
C. They are likely to provide information about changes in the home-country
workplace.
D. They are likely to provide the company's newsletters and local
newsletters.
E. They are likely to provide a formal program for the actual
assignment.
67. While training and developing a global workforce, which of the following is a
challenge that an organization is most likely to face?
A. Creating a comprehensive training program for employees from

different cultures
B. Making employees aware of the training content and the method of
evaluation
C. Linking training objectives to performance
management
D. Making employees aware of the
development plans
E. Deciding the duration of the training
program
68. Which of the following is true of employees from cultures high in uncertainty
avoidance?
A. Trainers adopt an impromptu style of

instruction.
B. Trainees expect a formal instructional
environment.
C. Trainers are flexible and open to schedule and activity
changes.
D. Trainees are allowed to determine the pace of the
programs.
E. Relationships with fellow trainees are
emphasized.
69. _____ refers to training employees and their family members to get them ready for an
assignment in a foreign country.
A. Acculturati
on
B. Uncertainty
avoidance
C. Cross-cultural
preparation
D. Community
training
E. Biculturalis
m
70. Identify a true statement about decisions related to the global compensation
strategy.
A. They affect a company's costs and abilities to

compete.
B. They focus more on flexibility than on fairness to account for differences
across cultures.
C. They are made on the basis of the cost of living in the home
country.
D. They do not compare wages across
countries.
E. They are not determined by labor
costs.
71. Rachel, a Canadian citizen, has been working in the United States for two years.
Rachel's manager, Kevin, believes she possesses the skills required for adaptation
and is ideal for an overseas assignment in India. Which of the following, if true,
strengthens Kevin's belief?
A. Rachel can take criticism only from positions

above hers.
B. Rachel needs time to develop a positive self-image in a
new place.
C. Rachel has the ability to foster relationships with people in the
host country.
D. Rachel does not understand and value her own culture
very well.
E. Rachel is very assertive and resistant to
change.
72. Identify a true statement about employee benefits.
A. In both the United States and Europe, the awarding of stock options is linked to
specific performance goals.
B. Pension plans are more widespread in the United States and Japan than in
Western Europe.
C. Unlike in the United States, compensation plans in other countries are less likely to
include benefits.
D. Paid vacation tends to be more generous in Western Europe than in the
United States.
E. Although stock options became a common form of incentive pay in Europe during
the 1990s, American businesses did not begin to adopt them until the end of that
decade.
73. Bryan, an American, works for a company that manufactures electronics. His
managers send him on an assignment to Japan. Which of the following factors is most
likely to have led to Bryan being chosen for the assignment?
A. Bryan is unfamiliar with the legal and political systems of Japan but would like to
learn about them.
B. Bryan needs training in the skills required for the assignment, which is available in
the United States.
C. Bryan does not consider the assignment more than a temporary
overseas trip.
D. Bryan is adaptable to new situations and appreciates cultural
differences.
E. Bryan wants to explore different cultures, although he is unwilling to mix
work and travel.
74. Identify a true statement about international labor relations.
A. In comparison with U.S. organizations, European organizations exert more

centralized control over labor relations in the countries they operate.
B. The day-to-day decisions about labor relations are usually handled by each foreign
subsidiary in companies that operate across borders.
C. Governments never get involved to protect workers who immigrate to
other countries.
D. Most U.S. organizations, in contrast to European organizations, bargain with a
union representing an entire industry's employees, rather than with the local
union.
E. Companies that operate across national boundaries mostly work only with unions
in the home-country.
75. Which of the following employees is likely to be the most motivated to take on an
overseas assignment?
A. Sayed, who may have medical conditions to deal with if he travels

overseas
B. Tina, who has a very realistic understanding of what working and living
abroad require
C. Ria, whose spouse doesn't want to shift to a new culture and learn a new
language
D. Elizabeth, who is ethnocentric and has stereotypical views about
other cultures
E. Rick, who requires extensive training to acquire the basic skills required for the
assignment
76. Daniel, an American, is selected by his firm to undertake a temporary assignment in
Russia. Daniel's compensation is determined and adjusted in accordance with the
standard of living in Russia. He is also paid relocation expenses to ensure he is not
inconvenienced by the transfer. Which of the following approaches have been used to
determine Daniel's compensation?
A. Third-country based
approach
B. Flat-pay
approach
C. Transactional
approach
D. Balance sheet
approach
E. Going-rate
approach
77. Alex, an employee of Teal Inc., an American company, was sent to Turkey for an
assignment. HR specialists at Teal Inc. have been preparing Alex for his return to the
United States after three years. Which of the following terms describes the process
being undertaken by the HR team at Teal Inc.?
A. Cross-cultural
preparation
B. Time
orientation
C. Repatriati
on
D. Uncertainty
avoidance
E. Culture
shock
78. Kim, a civil engineer, was sent by her firm to Kuwait on a temporary assignment.
After completing her project within the given span of six months, Kim approaches the
HR department of her firm to arrange for her return. The HR department is likely to
prepare for Kim's _____ as the first task.
A. expatriati
on
B. validati
on
C. repatriati
on
D. culture
shock
E. overseas
assignment
79. Identify a true statement about the balance sheet approach used for expatriate
compensation.
A. It includes planning for how the returning employee will contribute to the
organization.
B. It ensures managers receive extra pay for the inconvenience of locating
overseas.
C. It refers to the expatriate receiving information and recognizing changes
while abroad.
D. It withholds the amount of tax to be paid in the parent
country.
E. It constantly changes in response to a host of
economic forces.
80. During which phase does an employee returning from a foreign assignment
experience culture shock in reverse?
A. Expatriati
on
B. Cross-cultural
preparation
C. Repatriati
on
D. Honeymo
on
E. Validatio
n
81. The _____ begins by determining how much a person can buy, after taxes, in terms of
housing, goods and services, and a reserve for savings when taking a foreign work
assignment.
A. going-rate
approach
B. destination-based
approach
C. home-country-based
approach
D. flat-pay
approach
E. balance sheet
approach
82. Dan is sent on a foreign assignment to London. On his return, he is rewarded with a
bonus for his exemplary performance and commitment toward his organizational
duties. The firm's decision to reward Dan can be best described as a form of _____.
A. expatriati
on
B. validati
on
C. accreditati
on
D. cross-cultural
preparation
E. adjustme
nt
83. Christophe works for a German automobile company. He was sent to the United
States for an assignment. Initially, he enjoyed the culture and practices of the
country. As time progressed, however, Christophe found it difficult to adjust to the
new culture and to abide by its norms and values. Christophe's experience can be
defined as _____.
A. power
distance
B. time
orientation
C. repatriati
on
D. validati
on
E. culture
shock
84. Communication and _____ are the activities used by companies in the process of
helping employees repatriate.
A. validati
on
B. equalizati
on
C. dissoluti
on
D. resolutio
n
E. exclusio
n
85. Which of the following activities involves the expatriate receiving information and
recognizing changes while abroad?
A. Validatio
n
B. Equalizati
on
C. Communicati
on
D. Resolutio
n
E. Rationalizati
on
86. Which of the following activities involves giving the expatriate recognition for the
overseas service when the person returns home?
A. Resolutio
n
B. Dissolutio
n
C. Rationalizati
on
D. Communicati
on
E. Validatio
n
Essay Questions
87. Identify the reasons behind the trend toward expansion into global markets.
88. Describe the terms parent country, parent-country national, host country, host-
country national, third country, and third-country national, and provide examples for
each.
89. How do international, multinational, and global organizations differ from each other?
Briefly summarize the HR issues associated with each type of organization.
90. Describe the five dimensions of culture as identified by Hofstede.
91. Describe the impact that economic systems have on HRM in international markets.
92. Discuss how the differences among countries influence HR planning in organizations
that operate internationally.
93. Identify the criteria used for selecting employees for foreign assignments. Which of
them most strongly influence an employee's completion of a foreign assignment?
94. Discuss cross-cultural preparation, its methods, and its requirements in international
assignments.
95. Briefly elaborate on the challenges that companies face when compensating
employees from other countries.
96. Once a foreign assignment is completed, how can companies help expatriates return
to their home countries?
Chapter 16 Managing Human Resources Globally Answer Key
True / False Questions
1. The trends and arrangements that encourage international trade decrease the
demands on human resource management.
FALSE
The environment in which organizations operate is rapidly becoming a global one

for various reasons. The trends and arrangements that encourage international
trade also increase and change the demands on human resource management.
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Blooms: Remember
Learning Objective: 16-01 Summarize how the growth in international business activity affects human resource
management.
Level of Difficulty: 1 Easy
Topic: HRM in a Global Environment
2. A host country is a country, other than the parent country, in which an

organization operates a facility.
TRUE
A host country is a country, other than the parent country, in which an

organization operates a facility. The parent country is the country in which the
organization's headquarters is located.

Blooms: Remember
management.
3. Expatriates are employees from a country other than the parent country or the
host country.
FALSE
Third-country nationals are employees from a country other than the parent
country or the host country. Employees assigned to work in another country are
called expatriates.

Blooms: Remember
management.
4. The usual way that a company begins to enter foreign markets is by exporting, or
shipping, domestically produced items to other countries to be sold there.
TRUE
The usual way that a company begins to enter foreign markets is by exporting, or
shipping domestically produced items to other countries to be sold there.
Eventually, it may become economically desirable to set up operations in one or
more foreign countries.

Blooms: Remember
management.
5. While international companies go overseas on a broader scale, multinational

companies build one or a few facilities in another country.
FALSE
While international companies build one or a few facilities in another country,

multinational companies go overseas on a broader scale. They build facilities in a
number of different countries as a way to keep production and distribution costs to
a minimum.

Blooms: Remember
management.
6. Cultural differences are a disadvantage to global organizations.
FALSE
A global organization locates each facility based on the ability to effectively,

efficiently, and flexibly produce a product or service, using cultural differences as
an advantage. Rather than treating differences in other countries as a challenge to
overcome, a global organization treats different cultures as equals.

Blooms: Remember
management.
7. The most important influence on international HRM is the culture of the country in
which a facility is located.
TRUE
By far the most important influence on international HRM is the culture of the
country in which a facility is located. In fact, culture often determines the other
three international influences—political-legal systems, economic systems, and
education.

Blooms: Remember
Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets.
Topic: Factors Affecting HRM in International Markets
8. In countries with large power distances, people address one another with first
names.
FALSE
Power distance concerns the way the culture deals with unequal distribution of
power and defines the amount of inequality that is normal. In the high-power-
distance countries of Mexico and Japan, people address one another with titles. At
the other extreme, in the United States, in most situations people use one
another's first names—behavior that would be disrespectful in other cultures.

Blooms: Remember
9. High uncertainty avoidance refers to a strong cultural preference for structured

situations.
TRUE
Uncertainty avoidance describes how cultures handle the fact that the future is
unpredictable. High uncertainty avoidance refers to a strong cultural preference for
structured situations. In countries with low uncertainty avoidance, people seem to
take each day as it comes.

Blooms: Remember
10. Power distance concerns the way the culture deals with unequal distribution of
power.
TRUE
power and defines the amount of inequality that is normal. In countries with large
power distances, the culture defines it as normal to maintain large differences in
power. Job design aimed at employee empowerment can be problematic in
cultures with high power distance.

Blooms: Understand
Level of Difficulty: 2 Medium
11. Educational opportunities remain constant from one country to another.
FALSE
Educational opportunities vary from one country to another. In general, spending

on education is greater per pupil in high-income countries than in poorer countries.

Blooms: Remember
12. Ample opportunities for educational development are provided in capitalist

economic systems because education is free for students.
FALSE
Socialist economic systems provide ample opportunities for educational

development because the education system is free to students. At the same time,
socialism may not provide economic rewards (higher pay) for increasing one's
education. In capitalist systems, students bear more of the cost of their education,
but employers reward those who invest in education.

Blooms: Understand
13. A country's political system does not usually affect human resource management.
FALSE
A country's political-legal system—its government, laws, and regulations—strongly

impinges on human resource management. The country's laws often dictate the
requirements for certain HRM practices, such as training, compensation, hiring,
firing, and layoffs.

Blooms: Understand
14. Compared with other countries, the United States allows employers much latitude
in reducing their workforce.
TRUE
Compared with other countries, the United States allows employers wide latitude
in reducing their workforce, giving U.S. employers the option of hiring for peak
needs, then laying off employees if needs decline. Other governments place more
emphasis on protecting workers' jobs. European countries, and France in
particular, tend to be very strict in this regard.

Blooms: Understand
Learning Objective: 16-03 Discuss how differences among countries affect HR planning at organizations with
international operations.
Topic: Human Resource Planning in a Global Economy
15. Companies usually prefer hiring third-country nationals for filling positions in host-
countries.
FALSE
To be effective, employees in a foreign location must understand that region's

business and social culture. Organizations often meet this need by hiring host-
country nationals to fill most of their foreign positions. One of the reasons for this
is that training for and transporting families to foreign assignments is more
expensive than hiring people in the foreign country.

Blooms: Understand
Learning Objective: 16-04 Describe how companies select and train human resources in a global labor market.
Topic: Selecting Employees in a Global Labor Market
16. Most organizations' expanding opportunities in fast-developing nations have

limited their ability to tap into the immigrant workforce.
TRUE
At organizations located where needed skills are in short supply, hiring immigrant
employees may be part of an effective recruitment and selection strategy. The
ability to tap this labor supply is limited by government paperwork and delays,
which deter some immigrant workers, as well as by expanding opportunities in
fast-developing nations such as China and India.

Blooms: Understand
17. According to research, employees who are extroverted, agreeable, and
conscientious are most successful at completing overseas assignments.
TRUE
Research has found successful completion of overseas assignments to be most

likely among employees who are extroverted (outgoing), agreeable (cooperative
and tolerant), and conscientious (dependable and achievement oriented).

Blooms: Remember
18. Even if employees persist and continue learning about their host country's culture,
they rarely recover from culture shock.
FALSE
After the honeymoon phase, an employees' mood experience culture shock.

Eventually, if employees persist and continue learning about their host country's
culture, they begin to recover from culture shock as they develop a greater
understanding and a support network.

Blooms: Understand
19. While training expatriates, trainers are expected to be authoritarian and

controlling of session in cultures low in power distance.
FALSE
A culture high in power distance expects trainers to be experts. Trainers are

expected to be authoritarian and controlling of session.

Blooms: Understand
Topic: Training and Developing a Global Workforce
20. A culture with a long-term orientation will have trainees who are likely to accept
development plans and assignments.
TRUE
The plan for the training program must consider international differences among
trainees. In the context of the effects of culture on training design, a culture with a
long-term orientation will have trainees who are likely to accept development
plans and assignments.

Blooms: Understand
21. The specific methods of performance management that work in one country may
fail in another, while general principles of performance management may apply in
most countries.
TRUE
The general principles of performance management may apply in most countries,

but the specific methods that work in one country may fail in another. Therefore,
organizations have to consider legal requirements, local business practices, and
national cultures when they establish performance management methods in other
countries.

Blooms: Understand
Learning Objective: 16-05 Discuss challenges related to managing performance and compensating employees
from other countries.
Topic: Performance Management across National Boundaries
22. European companies usually link stock options to specific performance goals, such
as the increase in a company's share price compared with that of its competitors.
TRUE
The United States and Europe differ in the way they award stock options. European
companies usually link the options to specific performance goals, such as the
increase in a company's share price compared with that of its competitors.

Blooms: Remember
Topic: Compensating an International Workforce
23. U.S. organizations exert more centralized control over labor relations in the various
countries where they operate when compared with European organizations.
TRUE
At least in comparison with European organizations, U.S. organizations exert more

centralized control over labor relations in the various countries where they
operate. U.S. management therefore must recognize differences in how various
countries understand and regulate labor relations.

Blooms: Understand
Topic: International Labor Relations
24. Cross-cultural training requires developing a greater awareness of one's own

culture, too.
TRUE
The general purpose of cross-cultural training is to create an appreciation of the

host country's culture so expatriates can behave appropriately. Paradoxically, this
requires developing a greater awareness of one's own culture, so that the
expatriate manager can recognize differences and similarities between the
cultures and, perhaps, home-culture biases.

Blooms: Understand
Learning Objective: 16-06 Explain how employers prepare managers for international assignments and for their
return home.
Topic: Managing Expatriates
25. The balance sheet approach for determining expatriate compensation adjusts the
manager's compensation so that it gives the manager the same standard of living
as in the home country plus extra pay for the inconvenience of locating overseas.
TRUE
The balance sheet approach for determining expatriate compensation adjusts the
manager's compensation so that it gives the manager the same standard of living
as in the home country plus extra pay for the inconvenience of locating overseas.

Blooms: Remember
return home.
Multiple Choice Questions
26. Which of the following agreements have been adopted by Canada, Mexico, and the
United States to encourage trade between the three countries?
A. CSN
B. NAFTA
C. PICTA
D. APEC
E. TAFTA
Global activities are simplified and encouraged by trade agreements among

nations. Canada, Mexico, and the United States have encouraged trade among
themselves with the North American Free Trade Agreement (NAFTA).

Blooms: Remember
management.
27. Peter, a British citizen, and Keith, a U.S. citizen, are employees of an electronics
manufacturing company headquartered in London. While Peter works out of the
London office, Keith operates out of the marketing unit in New York. Which of the
following statements is true in this scenario?
A. Peter is a host-country
national.
B. Peter is a parent-country
national.
C. Peter and Keith are
expatriates.
D. Keith is a third-country
national.
E. Keith is a home-country
national.
Peter, a British citizen, works out of London, where the company's headquarters is
located. This makes him a parent-country national. The parent country is the
country in which the organization's headquarters is located.
AACSB: Reflective Thinking

Blooms: Analyze
management.
Level of Difficulty: 3 Hard
28. Gerard is an Australian citizen and works at the headquarters of an Australian
company. This would make him a _____.
A. host-country
national
B. expatria
te
C. governing-country
national
D. third-country
national
E. parent-country
national
The parent country of a company is the country in which the organization's

headquarters is located. An employee of a company who is a native of the parent
country and also works in a facility located in the same country is referred to as a
parent-country national.
AACSB: Knowledge Application

Blooms: Apply
management.
29. Which of the following refers to the nation other than the one in which the
organization's headquarters is located, where the organization operates a facility?
A. Host
country
B. Parent
country
C. First
country
D. Third
country
E. Guest
country
A host country is a country (other than the parent country) in which an

organization operates a facility.

Blooms: Remember
management.
30. Sergio, a Spanish national, is an employee at a U.S. company. He works at the

company's branch in Spain. This would imply that Sergio is a:
A. host-country
national.
B. parent-country
national.
C. first-country
national.
D. third-country
national.
E. guest-country
national.
A host country is a country (other than the parent country) in which an

organization operates a facility. Employees who work in company facilities located
in the host country and are citizens of the host country are referred to as host-
country nationals.

Blooms: Apply
management.
31. Thomas, a South African, is employed by a pharmaceutical company whose
headquarters is in Philadelphia. Thomas operates out of the firm's production
facility in Cape Town, South Africa. Thomas is considered to be a(n):
A. parent-country
national.
B. third-country
national.
C. host-country
national.
D. repatriat
e.
E. expatriat
e.
Since Thomas operates out of the firm's production facility in Cape Town, he is a
host-country national. A host country is a country, other than the parent country,
in which an organization operates a facility.

Blooms: Apply
management.
32. A company is unlikely to have a facility in a:
A. parent
country.
B. host
country.
C. third
country.
D. home
country.
E. first
country.
A third country refers to a country that is neither the parent country nor the host
country.

Blooms: Remember
management.
33. Which of the following statements best defines an international organization?
A. An organization that builds facilities in a number of different countries in an

effort to minimize distribution costs.
B. An organization that builds facilities in a number of different countries in an
effort to minimize production costs.
countries.
D. An organization that exports goods to more than a few
countries.
E. An organization that exports goods to a number of different
countries.
An organization that sets up one or a few facilities in one or a few foreign countries
is referred to as an international organization.

Blooms: Remember
management.
34. Which of the following statements best describes a multinational company?
A. An organization that builds facilities within the same country to facilitate large-
scale exports to various countries.
B. An organization that builds facilities in a number of different countries in an
effort to minimize production and distribution costs.
countries.
D. An organization that operates from one country and has customers from all
over the globe.
E. A domestic organization that chooses to locate a facility using cultural
differences as an advantage.
A multinational company refers to an organization that builds facilities in a number

of different countries in an effort to minimize production and distribution costs.

Blooms: Remember
management.
35. A company with _____ level participation is likely to have a single office, the
A. internatio
nal
B. multinatio
nal
C. glob
al
D. domest
ic
E. transnation
al
A company with domestic level participation is likely to have a single office, the

Blooms: Remember
management.
36. Which of the following refers to a country that is neither the parent country nor the
host country of a company?
A. First
country
B. Facilitating
country
C. Governing
country
D. Third
country
E. Guest
country
country. The organization may or may not have a facility in the third country.

Blooms: Remember
management.
37. Which of the following terms would accurately describe an individual who was born
in the United States and is currently working in Germany for a company
headquartered in China?
A. Parent-country
national
B. Host-country
national
C. Third-country
national
D. Home-country
national
E. Guest-country
national
country. A third-country national is an employee who works at a host country but is
neither from the parent country nor from the host country.

Blooms: Understand
management.
38. James, an American who works for a U.S.-based company, has been sent to
England for a work assignment. James would be known as a(n):
A. expatriat
e.
B. repatriat
e.
C. host-country
national.
D. third-country
national.
E. guest-country
national.
In general, employees assigned to work in another country are called expatriates.

Blooms: Apply
management.
39. A company, which has its headquarters in Japan, has branches in the United
States. A Pakistani manager works in a facility in the United States. In this
scenario, Japan is the _____ country and Pakistan is the _____ country.
A. parent;
third
B. expatriate;
host
C. host;
guest
D. third;
first
E. parent;
host
The parent country is the country in which the organization's headquarters is

located. A host country is a country (other than the parent country) in which an
organization operates a facility. A third country refers to a country that is neither
the parent country nor the host country. The organization may or may not have a
facility in the third country.

Blooms: Apply
management.
40. John and Henry are U.S. citizens and work for the same law firm that is
headquartered in New York. John, however, works from the firm's London office,
while Henry works from the office in New York. Which of the following is a
difference between the two employees?
A. John is an expatriate, whereas Henry is a parent-country

national.
B. John is a host-country national, whereas Henry is an
expatriate.
C. John is a third-country national, whereas Henry is a host-country
national.
D. John is a parent-country national, whereas Henry is a host-country
national.
E. John is repatriate, whereas Henry is a third-country
national.
The parent country is the country in which the organization's headquarters is

located. Employees assigned to work in another country are called expatriates.
When organizations operate overseas, they must decide whether to hire parent-
country nationals, host-country nationals, or third-country nationals for the
overseas operations.

Blooms: Analyze
management.
41. Which of the following is the usual way in which companies first enter foreign
markets?
A. Importi
ng
B. Offshorin
g
C. Exportin
g
D. Outsourci
ng
E. Relocatin
g
As organizations grow, they often begin to meet demand from customers in other
countries. The usual way that a company begins to enter foreign markets is by
exporting, or shipping domestically produced items to other countries to be sold
there.

Blooms: Remember
management.
42. Which of the following organizations is most likely to locate a facility based on the
ability to effectively, efficiently, and flexibly produce a product or service, using
cultural differences as an advantage?
A. Foreign
subsidiaries
B. International
organizations
C. Multinational
organizations
D. Global
organizations
E. Domestic
organizations
At the highest level of involvement in the global marketplace are global

organizations. These flexible organizations compete by offering top products
tailored to segments of the market while keeping costs as low as possible. A global
organization locates each facility based on the ability to effectively, efficiently, and
flexibly produce a product or service, using cultural differences as an advantage.

Blooms: Remember
management.
43. Which of the following statements is true about cultures with a long-term
orientation?
A. They have a tendency to look down upon those who invest in

savings.
B. They prefer jobs that are relaxed and easy and detest
hard work.
C. They focus primarily on cultural values that fulfill obligations in
the present.
D. They promote respect for those who are good at achieving
immediate results.
E. They focus primarily on cultural values that tend to pay off in
the future.
Cultures with a long-term orientation value saving and persistence, which tend to
pay off in the future.

Blooms: Understand
44. Joanne and Patrick work for two different corporations. Joanne's company is very
structured, follows rigid rules, and expects employees to behave in a certain
manner. Patrick's company is a little more relaxed, and they tend to take each day
as it comes. Which of the following cultural differences contributes to this
difference in the way these corporations operate?
A. Joanne's company is high in feminine culture, whereas Patrick's company is

high in masculine culture.
B. Joanne's company functions with a low power distance, whereas Patrick's
company functions with high power distance.
C. Joanne's company functions at an individualistic level, whereas Patrick's
company functions at a collectivist level.
D. Joanne's company functions with short-term orientation, whereas Patrick's
company functions with a long-term orientation.
E. Joanne's company functions with a high uncertainty avoidance, whereas
Patrick's company functions with low uncertainty avoidance.
Hofstede's cultural dimension of uncertainty avoidance describes how cultures

handle the fact that the future is unpredictable. High uncertainty avoidance refers
to a strong cultural preference for structured situations. In countries such as
Greece and Portugal, people tend to rely heavily on religion, law, and technology
to give them a degree of security and clear rules about how to behave. In
countries with low uncertainty avoidance, including Singapore and Jamaica, people
seem to take each day as it comes.

Blooms: Analyze
45. Sarah works at an organization that places high emphasis on relationships,
service, care for the weak, and preserving the environment. Sarah's workplace
would be viewed as one that places emphasis on the qualities that are considered
high in _____.
A. feminini
ty
B. masculini
ty
C. power
distance
D. individualis
m
E. capitalis
m
A feminine culture is one that places a high value on relationships, service, care for
the weak, and preserving the environment. In this model, Germany and Japan are
examples of masculine cultures, and Sweden and Norway are examples of
feminine cultures.

Blooms: Apply
46. Dev and Emily are employees of a publishing house and work together on the
same team. Dev believes that Emily hails from an individualistic culture, while
Emily disagrees. Which of the following, if true, would strengthen Dev's argument?
A. Emily prioritizes helping her team members attain their career

advancement goals.
B. Emily focuses on self-development and puts her needs before those of
the group.
C. Emily places emphasis on achieving upward social mobility by fulfilling
common goals.
D. Emily prefers decision making through her team members' participation in
management.
E. Emily's traits are typical of those from cultures that expect protection from the
community.
Since Emily focuses on self-development and puts her needs before those of the
group, she reflects the values that are similar to those from an individualistic
background. In cultures that are high in individualism, people tend to think and act
as individuals rather than as members of a group.

Blooms: Analyze
47. Jerome believes that the key to effective management is to involve his team
members in the firm's decision-making process. He prefers structured meetings
and detailed plans that include everything from immediate goals to objectives for
the next decade. In this case, Jerome's thoughts reflect that of a person with:
A. an individualistic
nature.
B. a collectivist
nature.
C. high power
distance.
D. low uncertainty
avoidance.
E. a short-term
orientation.
Since Jerome believes that the key to effective management is to involve his team
members in the firm's decision-making process, he reflects the values that are
similar to those from an collectivist background. In cultures that are high in
collectivism, people think of themselves mainly as group members. They are
expected to devote themselves to the interests of the community, and the
community is expected to protect them when they are in trouble.

Blooms: Apply
48. Katie and Nate are employees of an investment bank based in Chicago. Katie is of
the opinion that the qualities Nate exhibits reflect an individual rather than a
masculine culture. Which of the following, if true, would strengthen Katie's beliefs?
A. Nate places more emphasis on a healthy superior-subordinate

relationship.
B. Nate places more emphasis on initiatives pertaining to corporate social
responsibility.
C. Nate places more emphasis on being ahead of the crowd and
achieving goals.
D. Nate places more emphasis on initiatives involving the conservation of the
environment.
E. Nate places more emphasis on achieving social mobility through
collectivist means.
Since Nate places more emphasis on being ahead of the crowd and achieving
goals, his primary drive is to complete and achieve. A masculine culture is a
culture that values achievement, money making, assertiveness, and competition.

Blooms: Analyze
49. Adrian and Ben are employees of a software development firm in San Francisco.
Ben believes that Adrian exhibits behaviors that resemble those of individuals from
feminine cultures. Which of the following, if true, would weaken Ben's beliefs?
A. Adrian places more emphasis on a harmonious working relationship between

members in his team.
B. Adrian places more emphasis on creating an atmosphere of competition among
his team members.
C. Adrian places more emphasis on undertaking initiatives aimed at mobilizing
funds for the underprivileged.
D. Adrian places more emphasis on undertaking initiatives aimed at preventing
environmental degradation.
E. Adrian places more emphasis on achieving social mobility through
collectivist means.
If Adrian places emphasis on creating an atmosphere of competition among his

team members, this is likely to weaken Ben's belief. A "masculine" culture is a
culture that values achievement, money making, assertiveness, and competition.

Blooms: Analyze
50. Edward, a U.S. businessman, visits India for a corporate meeting. While interacting
with the board members, he addresses them by their first names, as he does with
board members in the United States. However, the board members in India were
offended by this gesture. Which of the following differences in culture does this
scenario reveal?
A. Individualism/Collectiv
ism
B. Uncertainty
avoidance
C. Power
distance
D. Long-term/Short-term
orientation
E. Masculinity/Femini
nity
power and defines the amount of inequality that is normal. In countries with large
power distances, the culture defines it as normal to maintain large differences in
power. In countries with small power distances, people try to eliminate
inequalities. In the United States, in most situations, people use one another's first
names—behavior that would be disrespectful in other cultures.

Blooms: Apply
51. Tanya works at a retail store in Los Angeles. She addresses her Indian manager,
Priya, by her first name. Tanya's colleague advises against addressing Priya by her
name as she might find it disrespectful. The colleague is most likely right if Priya's
belief reflects that of an individual with:
A. a long-term
orientation.
B. a collectivist
nature.
C. high power
distance.
D. low uncertainty
avoidance.
E. a short-term
orientation.
In countries with large power distances, the culture defines it as normal to

maintain large differences in power. One way to see differences in power distance
is in the way people talk to one another. In the high-power-distance countries,
people address one another with titles (Señor Smith, Smith-san). At the other
extreme, in low-power distance countries, in most situations people use one
another's first names—behavior that would be disrespectful in other cultures.

Blooms: Apply
52. Tiffany, the marketing manager of a mobile phone company, is achievement
oriented and exhibits high levels of assertiveness. She prefers to plan extensively
for the future, treats everyone equally regardless of age or seniority, and doesn't
expect groups to stand up for an individual's rights. Tiffany is most likely to be an
individual whose culture reflects:
A. masculine
traits.
B. a short-term
orientation.
C. high power
distance.
D. low uncertainty
avoidance.
E. collectivist
views.
Tiffany exhibits qualities that are similar to that of people from countries that are
high in masculinity. A "masculine" culture is a culture that values achievement,
money making, assertiveness, and competition.

Blooms: Apply
53. Stephen works as an accountant in the headquarters of a fast food chain. He
encourages his colleagues to participate in an initiative he started that involved
planting trees and flowers on the office's grounds. Stephen's initiative reflects
those of individuals belonging to a culture with:
A. a collectivist
nature.
B. a short-term
orientation.
C. high feminine
traits.
D. high power
distance.
E. low uncertainty
avoidance.
Stephen's initiative reflects those of individuals with high feminine traits. A

"feminine" culture is one that places a high value on relationships, service, care for
the weak, and preserving the environment.

Blooms: Apply
54. Sheena hails from a country whose legal system is based on religious scriptures.
Social and business behaviors are judged based on religious laws and legal codes
to a great extent. Which aspect of culture do these conditions represent?
A. Masculini
ty
B. Time
orientation
C. High uncertainty
avoidance
D. Individualis
m
E. Power
distance
Sheena hails from a country that tends to rely heavily on religion to give them a
degree of security and clear rules about how to behave. High uncertainty
avoidance refers to a strong cultural preference for structured situations. In
countries with high uncertainty avoidance, people tend to rely heavily on religion,
law, and technology to give them a degree of security and clear rules about how to
behave.

Blooms: Apply
55. Eric's company lays down stringent rules for employees to follow at work. Business
decisions are usually made by teams rather than individuals. And profit making is
given priority over employee satisfaction. The company is at a stage where it
prioritizes quick revenue generation over sustainability. In this case, Eric's
company is most likely to be rated high on:
A. individualis
m.
B. long-term
orientation.
C. femininit
y.
D. uncertainty
avoidance.
E. power
distance.
Eric's company would be viewed as one that places emphasis on qualities that are
considered high in uncertainty avoidance. High uncertainty avoidance refers to a
strong cultural preference for structured situations.

Blooms: Apply
56. Jenny, a sales executive, believes that her hard work and persistence will reap
rewards in the future. She is not very assertive, prefers to address her seniors by
titles rather than names, prefers to be instructed, and awaits her team's approval
before taking decisions. Jenny is likely to belong to a culture that:
A. is highly
individualistic.
B. has high power
distance.
C. is low on uncertainty
avoidance.
D. is
feminine.
E. is long-term
oriented.
Jenny's beliefs reflect those of individuals hailing from cultures that lay emphasis
on long-term orientation. Cultures with a long-term orientation value saving and
persistence, which tend to pay off in the future.

Blooms: Apply
57. Which of the following is a feature of individualistic cultures?
A. It has flatter pay

structures.
B. It exhibits greater differences between the highest and lowest pay in the
organization.
C. It emphasizes on organizational rather than individual
performance.
D. It involves collective decision
making.
E. It has compensation systems based on fixed pay according to
seniority.
Compensation tied to individual performance may be seen as fairer and more

motivating by members of an individualist culture, a culture favoring individualism
will be more accepting of great differences in pay between the organization's
highest- and lowest-paid employees. Collectivist cultures tend to have much flatter
pay structures.

Blooms: Understand
58. Identify a true statement about countries with small power distances.
A. People address one another with

titles.
B. People try to eliminate
inequalities.
C. People tend to rely on orders from
superiors.
D. People seem to take each day as it
comes.
E. People value seniority more than
talent.
In countries with small power distances, such as Denmark and Israel, people try to
eliminate inequalities.

Blooms: Understand
59. Identify an advantage of having wide latitude in reducing a company workforce.
A. It gives the option of hiring for peak needs and laying off employees if
needs decline.
B. It helps in protecting workers'
jobs.
C. It helps employees adjust to a new
culture.
D. It allows workers to keep more of their earnings regardless of the taxes
they pay.
E. It gives employees the advantage of accumulating many years of work
experience in an organization.
Compared with other countries, the United States allows employers wide latitude
in reducing their workforce, giving U.S. employers the option of hiring for peak
needs, then laying off employees if needs decline.

Blooms: Understand
60. Which of the following is an effective recruitment and selection strategy when the
required skills are scarce in a particular location?
A. Host-country
nationals
B. Immigrant
workers
C. Parent-company
nationals
D. Local contract
workers
E. Local temporary
workers
At organizations located where needed skills are in short supply, hiring immigrant
employees may be part of an effective recruitment and selection strategy.
However, the ability to tap this labor supply is limited by government paperwork
and delays, which deter some immigrant workers, as well as by expanding
opportunities in fast-developing nations such as India and China.

Blooms: Remember
61. Betty, an American, works for an automobile manufacturer in New Jersey. Her
manager, Ruth, sends her on an overseas assignment to handle operations at the
company's newly acquired plant in Japan. Which of the following, if true, could
have most likely led to Betty being chosen for the assignment?
A. Betty lacks tolerance to ambiguity and resists

change.
B. Betty prefers to work in a less challenging work
environment.
C. Betty works best with those from feminine cultures with low
power distance.
D. Betty is insensitive to differences in cultures and
norms.
E. Betty possesses the motivation to succeed and is achievement
oriented.
Betty possesses the motivation to succeed and is achievement oriented; this is the
most likely reason for her to have been selected for the overseas assignment.

Blooms: Analyze
62. When an expatriate sent on a foreign assignment begins experiencing feelings of
isolation, criticism, stereotyping, and even hostility, he is said to be experiencing
_____.
A. validati
on
B. adjustme
nt
C. recover
y
D. culture
shock
E. repatriati
on
After the initial period, an employee's mood declines as he or she notices more
unpleasant differences and experiences feelings of isolation, criticism,
stereotyping, and even hostility. As the mood reaches bottom, the employee is
experiencing culture shock.

Blooms: Remember
63. Sean, a consultant, was assigned an overseas project in China for a period of two
years. After a period of seven months, Sean's manager decides to bring Sean back
to his home country and replace him with someone else in China. Which of the
following, if true, is most likely to have resulted in this decision?
A. Sean exhibited the ability to effectively communicate in

Mandarin.
B. Sean exhibited a sense of intolerance toward
collectivist ideals.
C. Sean exhibited high levels of extraversion that was required
for the job.
D. Sean exhibited high levels of
cohesiveness.
E. Sean exhibited low levels of disillusionment than other
employees.
Sean exhibiting a sense of intolerance toward collectivist ideals is most likely to

have resulted in his manager's decision to replace him with someone else.
Flexibility, tolerance of ambiguity, and sensitivity to cultural differences are
important traits necessary to be successful in an overseas assignment.

Blooms: Analyze
64. _____ refers to training employees on overseas work assignments to work through
national and cultural boundaries.
A. Adventure
learning
B. Experiential
learning
C. Validatio
n
D. Cross-cultural
preparation
E. Repatriati
on
When an organization selects an employee for a position in a foreign country, it

must prepare the employee for the foreign assignment. This kind of training is
called cross-cultural preparation, preparing employees to work across national and
cultural boundaries, and it often includes family members who will accompany the
employee on the assignment.

Blooms: Remember
65. Roger, an automobile engineer, was sent on a foreign assignment to Spain.
Initially, Roger was fascinated by the culture and history of the town he lived in.
Within a month, he began to feel disillusioned and discomforted by the differences
in norms and values. Which of the following terms best describe this phase of
Roger's experience?
A. Recover
y
B. Culture
shock
C. Honeymo
on
D. Validatio
n
E. Adjustme
nt
After the initial phase of honeymoon, the employee's mood declines as he or she
notices more unpleasant differences and experiences feelings of isolation,
criticism, stereotyping, and even hostility. As the mood reaches bottom, the
employee experiences culture shock.

Blooms: Apply
66. Ricardo has been selected to work at his firm's manufacturing plant in China. The
training department divides the cross-cultural preparation into three phases.
Which of the following is the training team likely to do during the departure phase
of cross-cultural preparation?
A. They are likely to conduct training sessions that include language

instructions.
B. They are likely to arrange a mentoring program for the assignment
overseas.
C. They are likely to provide information about changes in the home-country
workplace.
D. They are likely to provide the company's newsletters and local
newsletters.
E. They are likely to provide a formal program for the actual
assignment.
The training team is likely to conduct training sessions that include language
instructions in the departure phase. The training that is required for an
international assignment involves language instruction and an orientation to the
foreign country's culture.

Blooms: Apply
67. While training and developing a global workforce, which of the following is a
challenge that an organization is most likely to face?
A. Creating a comprehensive training program for employees from

different cultures
B. Making employees aware of the training content and the method of
evaluation
C. Linking training objectives to performance
management
D. Making employees aware of the
development plans
E. Deciding the duration of the training
program
In an organization whose employees come from more than one country, some
special challenges arise with regard to training and development. One of the
challenges is that the training and development programs should be effective for
all participating employees, regardless of their country of origin.

Blooms: Understand
68. Which of the following is true of employees from cultures high in uncertainty
avoidance?
A. Trainers adopt an impromptu style of

instruction.
B. Trainees expect a formal instructional
environment.
C. Trainers are flexible and open to schedule and activity
changes.
D. Trainees are allowed to determine the pace of the
programs.
E. Relationships with fellow trainees are
emphasized.
A culture high in uncertainty avoidance expects formal instructional environments.

There is less tolerance for an impromptu style.

Blooms: Understand
69. _____ refers to training employees and their family members to get them ready for
an assignment in a foreign country.
A. Acculturati
on
B. Uncertainty
avoidance
C. Cross-cultural
preparation
D. Community
training
E. Biculturalis
m
When an organization selects an employee for a position in a foreign country, it

must prepare the employee for the foreign assignment. This kind of training is
called cross-cultural preparation, preparing employees to work across national and
cultural boundaries, and it often includes family members who will accompany the
employee on the assignment.

Blooms: Remember
70. Identify a true statement about decisions related to the global compensation
strategy.
A. They affect a company's costs and abilities to

compete.
B. They focus more on flexibility than on fairness to account for differences
across cultures.
C. They are made on the basis of the cost of living in the home
country.
D. They do not compare wages across
countries.
E. They are not determined by labor
costs.
Global compensation strategy is important as a way to show employees that the

pay structure is designed to be fair and related to the value that employees bring
to the organization. These decisions affect a company's costs and ability to
compete.

Blooms: Understand
71. Rachel, a Canadian citizen, has been working in the United States for two years.
Rachel's manager, Kevin, believes she possesses the skills required for adaptation
and is ideal for an overseas assignment in India. Which of the following, if true,
strengthens Kevin's belief?
A. Rachel can take criticism only from positions

above hers.
B. Rachel needs time to develop a positive self-image in a
new place.
C. Rachel has the ability to foster relationships with people in the
host country.
D. Rachel does not understand and value her own culture
very well.
E. Rachel is very assertive and resistant to
change.
Kevin's belief is likely to be strengthened if Rachel has the ability to foster

relationships with people in the host country. Adaptation requires the ability to
maintain a positive self-image and feeling of well-being.

Blooms: Analyze
Topic: Performance Management across National Boundaries
72. Identify a true statement about employee benefits.
A. In both the United States and Europe, the awarding of stock options is linked to
specific performance goals.
B. Pension plans are more widespread in the United States and Japan than in
Western Europe.
C. Unlike in the United States, compensation plans in other countries are less
likely to include benefits.
D. Paid vacation tends to be more generous in Western Europe than in the
United States.
E. Although stock options became a common form of incentive pay in Europe
during the 1990s, American businesses did not begin to adopt them until the
end of that decade.
As in the United States, compensation packages in other countries include

benefits. Paid vacation tends to be more generous in Western Europe than in the
United States. Pension plans are more widespread in parts of Western Europe than
in the United States and Japan.

Blooms: Remember
73. Bryan, an American, works for a company that manufactures electronics. His
managers send him on an assignment to Japan. Which of the following factors is
most likely to have led to Bryan being chosen for the assignment?
A. Bryan is unfamiliar with the legal and political systems of Japan but would like
to learn about them.
B. Bryan needs training in the skills required for the assignment, which is available
in the United States.
C. Bryan does not consider the assignment more than a temporary
overseas trip.
D. Bryan is adaptable to new situations and appreciates cultural
differences.
E. Bryan wants to explore different cultures, although he is unwilling to mix
work and travel.
Employees selected for expatriate assignments already have job-related skills, so

preparation for expatriate assignments often focuses on cross-cultural training—
that is, training in what to expect from the host country's culture. The general
purpose of cross-cultural training is to create an appreciation of the host country's
culture so expatriates can behave appropriately.

Blooms: Analyze
74. Identify a true statement about international labor relations.
A. In comparison with U.S. organizations, European organizations exert more

centralized control over labor relations in the countries they operate.
B. The day-to-day decisions about labor relations are usually handled by each
foreign subsidiary in companies that operate across borders.
C. Governments never get involved to protect workers who immigrate to
other countries.
D. Most U.S. organizations, in contrast to European organizations, bargain with a
union representing an entire industry's employees, rather than with the local
union.
E. Companies that operate across national boundaries mostly work only with
unions in the home-country.
Companies that operate across national boundaries often need to work with unions
in more than one country. The day-to-day decisions about labor relations are
usually handled by each foreign subsidiary. The reason is that labor relations on an
international scale involve differences in laws, attitudes, and economic systems, as
well as differences in negotiation styles. At least in comparison with European
organizations, U.S. organizations exert more centralized control over labor
relations in the various countries where they operate.

Blooms: Understand
Topic: International Labor Relations
75. Which of the following employees is likely to be the most motivated to take on an
overseas assignment?
A. Sayed, who may have medical conditions to deal with if he travels

overseas
B. Tina, who has a very realistic understanding of what working and living
abroad require
C. Ria, whose spouse doesn't want to shift to a new culture and learn a new
language
D. Elizabeth, who is ethnocentric and has stereotypical views about
other cultures
E. Rick, who requires extensive training to acquire the basic skills required for the
assignment
An employee who has the motivation to work on an overseas assignment has a

realistic understanding of what working and living abroad require. In this case,
Tina, who has a very realistic understanding of what working and living abroad
require, is likely to be most motivated to take up an overseas assignment.

Blooms: Analyze
return home.
76. Daniel, an American, is selected by his firm to undertake a temporary assignment
in Russia. Daniel's compensation is determined and adjusted in accordance with
the standard of living in Russia. He is also paid relocation expenses to ensure he is
not inconvenienced by the transfer. Which of the following approaches have been
used to determine Daniel's compensation?
A. Third-country based
approach
B. Flat-pay
approach
C. Transactional
approach
D. Balance sheet
approach
E. Going-rate
approach
Most organizations use a balance sheet approach to determine the total amount of
the package. This approach adjusts the manager's compensation so that it gives
the manager the same standard of living as in the home country plus extra pay for
the inconvenience of locating overseas.

Blooms: Apply
return home.
Topic: Compensating Expatriates
77. Alex, an employee of Teal Inc., an American company, was sent to Turkey for an
assignment. HR specialists at Teal Inc. have been preparing Alex for his return to
the United States after three years. Which of the following terms describes the
process being undertaken by the HR team at Teal Inc.?
A. Cross-cultural
preparation
B. Time
orientation
C. Repatriati
on
D. Uncertainty
avoidance
E. Culture
shock
As the expatriate's assignment nears its end, the human resource department
faces a final challenge: helping the expatriate make the transition back to his or
her home country. The process of preparing expatriates to return home from a
foreign assignment is called repatriation.

Blooms: Apply
return home.
78. Kim, a civil engineer, was sent by her firm to Kuwait on a temporary assignment.
After completing her project within the given span of six months, Kim approaches
the HR department of her firm to arrange for her return. The HR department is
likely to prepare for Kim's _____ as the first task.
A. expatriati
on
B. validati
on
C. repatriati
on
D. culture
shock
E. overseas
assignment
The HR team is likely to prepare for Kim's repatriation. The process of preparing
expatriates to return home from a foreign assignment is called repatriation.

Blooms: Apply
return home.
Topic: Helping Expatriates Return Home
79. Identify a true statement about the balance sheet approach used for expatriate
compensation.
A. It includes planning for how the returning employee will contribute to the
organization.
B. It ensures managers receive extra pay for the inconvenience of locating
overseas.
C. It refers to the expatriate receiving information and recognizing changes
while abroad.
D. It withholds the amount of tax to be paid in the parent
country.
E. It constantly changes in response to a host of
economic forces.
One of the greatest challenges of managing expatriates is determining the

compensation package. Most organizations use a balance sheet approach to
determine the total amount of the package. This approach adjusts the manager's
compensation so that it gives the manager the same standard of living as in the
home country plus extra pay for the inconvenience of locating overseas.

Blooms: Remember
return home.
80. During which phase does an employee returning from a foreign assignment
experience culture shock in reverse?
A. Expatriati
on
B. Cross-cultural
preparation
C. Repatriati
on
D. Honeymo
on
E. Validatio
n
The process of preparing expatriates to return home from a foreign assignment is

called repatriation. Reentry is not as simple as it might sound. Culture shock takes
place in reverse.

Blooms: Remember
return home.
81. The _____ begins by determining how much a person can buy, after taxes, in terms
of housing, goods and services, and a reserve for savings when taking a foreign
work assignment.
A. going-rate
approach
B. destination-based
approach
C. home-country-based
approach
D. flat-pay
approach
E. balance sheet
approach
The balance sheet approach begins by determining the purchasing power of

compensation for the same type of job in the manager's own country—that is, how
much a person can buy, after taxes, in terms of housing, goods and services, and a
reserve for savings.

Blooms: Remember
return home.
Topic: Compensating Expatriates
82. Dan is sent on a foreign assignment to London. On his return, he is rewarded with
a bonus for his exemplary performance and commitment toward his organizational
duties. The firm's decision to reward Dan can be best described as a form of _____.
A. expatriati
on
B. validati
on
C. accreditati
on
D. cross-cultural
preparation
E. adjustme
nt
The firm's decision to reward Dan can be best described as a form of validation.
Validation means giving the expatriate recognition for the overseas service when
this person returns home.

Blooms: Apply
return home.
83. Christophe works for a German automobile company. He was sent to the United
States for an assignment. Initially, he enjoyed the culture and practices of the
country. As time progressed, however, Christophe found it difficult to adjust to the
new culture and to abide by its norms and values. Christophe's experience can be
defined as _____.
A. power
distance
B. time
orientation
C. repatriati
on
D. validati
on
E. culture
shock
For a month or so after arriving, the foreign worker enjoys a "honeymoon" of

fascination and euphoria as the employee enjoys the novelty of the new culture
and compares its interesting similarities to or differences from the employee's own
culture. As the mood reaches bottom, the employee is experiencing culture shock,
the disillusionment and discomfort that occur during the process of adjusting to a
new culture and its norms, values, and perspectives.

Blooms: Apply
return home.
Topic: Preparing Expatriates Blooms: Apply
84. Communication and _____ are the activities used by companies in the process of
helping employees repatriate.
A. validati
on
B. equalizati
on
C. dissoluti
on
D. resolutio
n
E. exclusio
n
Companies are increasingly making efforts to help expatriates through transition.

Two activities help the process along: communication and validation.
Communication refers to the expatriate receiving information and recognizing
changes while abroad. Validation means giving the expatriate recognition for the
overseas service when this person returns home. Validation should also include
planning for how the returning employee will contribute to the organization.

Blooms: Remember
return home.
85. Which of the following activities involves the expatriate receiving information and
recognizing changes while abroad?
A. Validatio
n
B. Equalizati
on
C. Communicati
on
D. Resolutio
n
E. Rationalizati
on
Companies are increasingly making efforts to help expatriates through this

transition. Two activities help the process along: communication and validation.
changes while abroad.

Blooms: Remember
return home.
86. Which of the following activities involves giving the expatriate recognition for the
overseas service when the person returns home?
A. Resolutio
n
B. Dissolutio
n
C. Rationalizati
on
D. Communicati
on
E. Validatio
n
Validation means giving the expatriate recognition for the overseas service when
this person returns home. Validation should also include planning for how the
returning employee will contribute to the organization.

Blooms: Remember
return home.
Essay Questions
87. Identify the reasons behind the trend toward expansion into global markets.
Foreign countries can provide a business with new markets in which there are
millions or billions of new customers. In addition, companies set up operations
overseas because they can operate with lower labor costs. Finally, thanks to
advances in telecommunications and information technology, companies can more
easily spread work around the globe, wherever they find the right mix of labor
costs and abilities. Teams with members in different time zones can keep projects
moving around the clock, or projects can be assigned according to regions with
particular areas of expertise. Also, global activities are simplified and encouraged
by trade agreements among nations. For example, most countries in Western
Europe belong to the European Union and share a common currency, the euro.
Canada, Mexico, and the United States have encouraged trade among themselves
with the North American Free Trade Agreement (NAFTA). The World Trade
Organization (WTO) resolves trade disputes among more than 100 participating
nations.

Blooms: Understand
management.
88. Describe the terms parent country, parent-country national, host country, host-
country national, third country, and third-country national, and provide examples
for each.
When organizations operate globally, their employees are very likely to be citizens
of more than one country. Employees may come from the employer's parent
country, a host country, or a third country. The parent country is the country in
which the organization's headquarters is located. An individual born in the parent
country and working in the same country is known as a parent-country national.
For example, the United States is the parent country of General Motors, because
GM's headquarters is in Michigan. A GM employee who was born in the United
States and works at GM's headquarters or one of its U.S. factories is therefore a
parent-country national. A host country is a country (other than the parent
country) in which an organization operates a facility. A host-country national is one
who is a native of the host country and also works in that country. Great Britain is a
host country of General Motors because GM has operations there. Any British
workers hired to work at GM's British facility would be host-country nationals, that
is, employees who are citizens of the host country. A third country refers to a
country that is neither the parent country nor the host country. The organization
may or may not have a facility in the third country. A third country national is one
who is a native of the third country and works in the host country. In the example
of GM's operations in Great Britain, the company could hire an Australian manager
to work there. The Australian manager would be a third-country national because
the manager is neither from the parent country (the United States) nor from the
host country (Great Britain).

Blooms: Understand
management.
89. How do international, multinational, and global organizations differ from each
other? Briefly summarize the HR issues associated with each type of organization.
An organization that sets up one or a few facilities in one or a few foreign countries
is known as an international organization. The decision to participate in
international activities raises several HR issues, including the basic question of
whether a particular location provides an environment where the organization can
successfully acquire and manage human resources. While international companies
build one or a few facilities in another country, multinational companies go
overseas on a broader scale. They build facilities in a number of different countries
as a way to keep production and distribution costs to a minimum. In general, when
organizations become multinationals, they move production facilities from
relatively high-cost locations to lower-cost locations. The HRM challenges faced by
a multinational company are similar to but larger than those of an international
organization because more countries are involved. More than ever, the
organization needs to hire managers who can function in a variety of settings, give
them necessary training, and provide flexible compensation systems that take into
account the different pay rates, tax systems, and costs of living from one country
to another. At the highest level of involvement in the global marketplace are global
organizations. These flexible organizations compete by offering top products
tailored to segments of the market while keeping costs as low as possible. A global
organization locates each facility based on the ability to effectively, efficiently, and
flexibly produce a product or service, using cultural differences as an advantage.
Rather than treating differences in other countries as a challenge to overcome, a
global organization treats different cultures as equals. It may have multiple
headquarters spread across the globe, so decisions are more decentralized. This
type of organization needs HRM practices that encourage flexibility and are based
on an in-depth knowledge of differences among countries. Global organizations
must be able to recruit, develop, retain, and use managers who can get results
across national boundaries. A global organization needs a transnational HRM
system that features decision making from a global perspective, managers from
many countries, and ideas contributed by people from a variety of cultures.

Blooms: Understand
management.
90. Describe the five dimensions of culture as identified by Hofstede.
The five dimensions of culture that Geert Hofstede identified in his classic study of
culture are:
1) Individualism/collectivism: This describes the strength of the relation between

an individual and other individuals in the society. In cultures that are high in
individualism, people tend to think and act as individuals rather than as members
of a group. People in these countries are expected to stand on their own two feet,
rather than be protected by the group. In cultures that are high in collectivism,
people think of themselves mainly as group members. They are expected to
devote themselves to the interests of the community, and the community is
expected to protect them when they are in trouble.
2) Power distance: This concerns the way the culture deals with unequal
distribution of power and defines the amount of inequality that is normal. In
countries with large power distances, the culture defines it as normal to maintain
large differences in power. In countries with small power distances, people try to
eliminate inequalities.
3) Uncertainty avoidance: This describes how cultures handle the fact that the
future is unpredictable. High uncertainty avoidance refers to a strong cultural
preference for structured situations. In countries with low uncertainty avoidance,
people seem to take each day as it comes.
4) Masculinity/femininity: This is the emphasis a culture places on practices or
qualities that have traditionally been considered masculine or feminine. A
masculine culture is a culture that values achievement, money making,
assertiveness, and competition. A feminine culture is one that places a high value
on relationships, service, care for the weak, and preserving the environment.
5) Long-term/short-term orientation: This suggests whether the focus of cultural
values is on the future (long term) or the past and present (short term). Cultures
with a long-term orientation value saving and persistence, which tend to pay off in
the future. Short-term orientations, promote respect for past tradition and for
fulfilling social obligations in the present.

Blooms: Understand
91. Describe the impact that economic systems have on HRM in international
markets.
A country's economic system, whether capitalist or socialist, as well as the

government's involvement in the economy through taxes or compensation, price
controls, and other activities, influences human resource management practices in
a number of ways.
As with all aspects of a region's or country's life, the economic system and culture
are likely to be closely tied, providing many of the incentives or disincentives for
developing the value of the labor force. Socialist economic systems provide ample
opportunities for educational development because the education system is free to
students. At the same time, socialism may not provide economic rewards (higher
pay) for increasing one's education. In capitalist systems, students bear more of
the cost of their education, but employers reward those who invest in education.
The health of an economic system affects human resource management. In
developed countries with great wealth, labor costs are relatively high. Such
differences show up in compensation systems and in recruiting and selection
decisions.
In general, socialist systems take a higher percentage of each worker's income as
the worker's income increases. Capitalist systems tend to let workers keep more of
their earnings. This impacts the take-home pay of employees in different countries
who are paid the same salaries. Such differences make pay structures more
complicated when they cross national boundaries, and they can affect recruiting of
candidates from more than one country.

Blooms: Understand
92. Discuss how the differences among countries influence HR planning in
organizations that operate internationally.
When organizations decide to operate internationally or globally, human resource

planning involves decisions about where and how many employees are needed for
each international facility. Decisions about where to locate include HR
considerations such as the cost and availability of qualified workers. In addition,
HR specialists must work with other members of the organization to weigh these
considerations against financial and operational requirements. Other location
decisions involve outsourcing, which may or may not involve contracting specific
functions to workers outside the United States in lower-wage countries. Human
resource planning includes decisions to hire and lay off workers to prepare for the
organization's expected needs. Compared with other countries, the United States
allows employers wide latitude in reducing their workforce, giving U.S. employers
the option of hiring for peak needs, then laying off employees if needs decline.
Other governments place more emphasis on protecting workers' jobs. European
countries, France in particular, tend to be very strict in this regard.

Blooms: Understand
93. Identify the criteria used for selecting employees for foreign assignments. Which of
them most strongly influence an employee's completion of a foreign assignment?
Selection of employees for foreign assignments should reflect criteria that have
been associated with success in working overseas: 1. Competency in the
employee's area of expertise. 2. Ability to communicate verbally and nonverbally
in the foreign country. 3. Flexibility, tolerance of ambiguity, and sensitivity to
cultural differences. 4. Motivation to succeed and enjoyment of challenges. 5.
Willingness to learn about the foreign country's culture, language, and customs. 6.
Support from family members. In research conducted a number of years ago, the
factor most strongly influencing whether an employee completed a foreign
assignment was the comfort of the employee's spouse and family. Personality may
also be important. Research has found successful completion of overseas
assignments to be most likely among employees who are extroverted (outgoing),
agreeable (cooperative and tolerant), and conscientious (dependable and
achievement oriented).

Blooms: Understand
94. Discuss cross-cultural preparation, its methods, and its requirements in

international assignments.
Cross-cultural preparation involves training employees and their family members

for an assignment in a foreign country. Methods for providing cross-cultural
preparation training ranges from lectures for employees and their families to visits
to culturally diverse communities. Employees and their families may also spend
time visiting a local family from the country where they will be working.
The training is necessary for all three phases of an international assignment:
1) Preparation for departure—language instruction and an orientation to the

foreign country's culture.
2) The assignment itself—some combination of a formal program and mentoring
relationship to provide ongoing further information about the foreign country's
culture.
3) Preparation for the return home—providing information about the employee's
community and home-country workplace (from company newsletters, local
newspapers, and so on).

Blooms: Understand
95. Briefly elaborate on the challenges that companies face when compensating
employees from other countries.
Market pay structures can differ substantially across countries in terms of both pay
level and the relative worth of jobs. One reason for such differences is a shortage
of talent in local labor markets. Differences such as these create a dilemma for
global companies: Should pay levels and differences reflect what workers are used
to in their own countries? Or should they reflect the earnings of colleagues in the
country of the facility, or earnings at the company headquarters? If the standard is
that of the higher rates in the home country, the employees in the host country
will likely see the expatriate's pay as unfair. If the standard is that of the lower pay
in the host country, the company will likely find it impossible to persuade an
expatriate to take an assignment in the host country. Dilemmas such as these
make a global compensation strategy important as a way to show employees that
the pay structure is designed to be fair and related to the value that employees
bring to the organization. These decisions affect a company's costs and ability to
compete. However, that conclusion oversimplifies the situation for many
companies. Merely comparing wages ignores differences in education, skills,
quality, and productivity.

Blooms: Understand
96. Once a foreign assignment is completed, how can companies help expatriates
return to their home countries?
The process of preparing expatriates to return home from a foreign assignment is

called repatriation. Reentry is not as simple as it might sound. Culture shock takes
place in reverse. Companies are increasingly making efforts to help expatriates
through the transition of returning to the home country after completing a foreign
assignment. Two activities help the process along: communication and validation.
changes while abroad. Communication related to career development before and
during the overseas assignment also should help the employee return to a position
that is challenging and interesting. Validation means giving the expatriate
recognition for the overseas service when this person returns home. Validation
should also include planning for how the returning employee will contribute to the
organization.

Blooms: Understand
return home.

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Chapter 16

Managing Human Resources Globally

True / False Questions

5. While international companies go overseas on a broader scale, multinational

6. Cultural differences are a disadvantage to global organizations.

11. Educational opportunities remain constant from one country to another.

16. Most organizations' expanding opportunities in fast-developing nations have limited

Multiple Choice Questions

28. Gerard is an Australian citizen and works at the headquarters of an Australian

30. Sergio, a Spanish national, is an employee at a U.S. company. He works at the

31. Thomas, a South African, is employed by a pharmaceutical company whose

33. Which of the following statements best defines an international organization?

A. An organization that builds facilities in a number of different countries in an effort

34. Which of the following statements best describes a multinational company?

A. John is an expatriate, whereas Henry is a parent-country

A. They have a tendency to look down upon those who invest in

A. Joanne's company is high in feminine culture, whereas Patrick's company is high in

A. Emily prioritizes helping her team members attain their career

A. Nate places more emphasis on a healthy superior-subordinate

A. Adrian places more emphasis on a harmonious working relationship between

57. Which of the following is a feature of individualistic cultures?

A. It has flatter pay

A. People address one another with

59. Identify an advantage of having wide latitude in reducing a company workforce.

A. Betty lacks tolerance to ambiguity and resists

62. When an expatriate sent on a foreign assignment begins experiencing feelings of

A. Sean exhibited the ability to effectively communicate in

A. They are likely to conduct training sessions that include language

A. Creating a comprehensive training program for employees from

A. Trainers adopt an impromptu style of

A. They affect a company's costs and abilities to

A. Rachel can take criticism only from positions

72. Identify a true statement about employee benefits.

74. Identify a true statement about international labor relations.

A. In comparison with U.S. organizations, European organizations exert more

A. Sayed, who may have medical conditions to deal with if he travels

90. Describe the five dimensions of culture as identified by Hofstede.

True / False Questions

The environment in which organizations operate is rapidly becoming a global one

AACSB: Analytical Thinking

2. A host country is a country, other than the parent country, in which an

A host country is a country, other than the parent country, in which an

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

5. While international companies go overseas on a broader scale, multinational

While international companies build one or a few facilities in another country,

AACSB: Analytical Thinking

6. Cultural differences are a disadvantage to global organizations.

A global organization locates each facility based on the ability to effectively,

AACSB: Analytical Thinking

AACSB: Analytical Thinking

AACSB: Analytical Thinking

9. High uncertainty avoidance refers to a strong cultural preference for structured

AACSB: Analytical Thinking

AACSB: Analytical Thinking

11. Educational opportunities remain constant from one country to another.

Educational opportunities vary from one country to another. In general, spending

AACSB: Analytical Thinking

12. Ample opportunities for educational development are provided in capitalist

Socialist economic systems provide ample opportunities for educational

AACSB: Analytical Thinking

A country's political-legal system—its government, laws, and regulations—strongly