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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.
AACSB: Analytical Thinking
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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.
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Accessibility: Keyboard Navigation
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
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.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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
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.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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
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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.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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
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.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
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
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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.
AACSB: Analytical Thinking
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Blooms: Remember
Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets.
Level of Difficulty: 1 Easy
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 namesbehavior that would be disrespectful
in other cultures.
AACSB: Analytical Thinking
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Blooms: Remember
Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets.
Level of Difficulty: 1 Easy
Topic: Factors Affecting HRM in International Markets
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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.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Remember
Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets.
Level of Difficulty: 1 Easy
Topic: Factors Affecting HRM in International Markets
10.
Power distance concerns the way the culture deals with unequal distribution of power.
TRUE
Power distance 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. Job design aimed at
employee empowerment can be problematic in cultures with high power distance.
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Blooms: Understand
Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets.
Level of Difficulty: 2 Medium
Topic: Factors Affecting HRM in International Markets
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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.
AACSB: Analytical Thinking
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Blooms: Remember
Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets.
Level of Difficulty: 1 Easy
Topic: HRM in a Global Environment
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.
AACSB: Analytical Thinking
Accessibility: Keyboard Navigation
Blooms: Understand
Learning Objective: 16-02 Identify the factors that most strongly influence HRM in international markets.
Level of Difficulty: 2 Medium
Topic: Factors Affecting HRM in International Markets
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