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Chapter 02 - The Role of Globalization in HR Policy and Practice
[QUESTION]
32. A company that exports, as a means to sell its products in foreign markets will
A) Have a direct investment in a foreign market.
B) Increase sales volume allowing for better management of the costs associated with research
and development
C) Avoid the high cost of transportation fees and tariffs and maintain a competitive advantage.
D) Enable individuals to take advantage of existing advertising and training to ensure success.
E) Maintain exclusivity with one other company to distribute product and control their brand in
the foreign country.
33. In the __________ approach, foreign subsidiaries have little autonomy, operations are
centralized, and major decisions are made at corporate headquarters.
A) Geocentric
B) Ethnocentric
C) Polycentric
D) Regiocentric
E) Sociocentric
34. Hofstede’s work on culture and its impact on managing HR within an international
environment was conducted in the 1960’s and ‘70’s. It is interesting that
A) the results of his work have been replicated, confirming the validity of his findings, and
recent studies have expanded on his original theory.
B) while his work is often cited, it was impossible to replicate his findings in subsequent studies.
C) the results of his study can only be applied within the electronics industry and have no
relevance outside of that industry.
D) the definition of culture when used in reference to a society is in many ways very different
from the definition when used to describe the environment within a company.
E) the study found vast differences between the culture of the society and the culture of the local
companies that operated in that society.
Chapter 02 - The Role of Globalization in HR Policy and Practice
[QUESTION]
35. Pepsi provides Heineken with its formula or agrees to supply the cola syrup and Heineken
adds carbonated water, packages it in appropriate containers, and sells it in the Netherlands.
Pepsi cannot enter into a similar agreement with another firm to sell Pepsi in the Netherlands,
and Heineken cannot alter the product, nor can it begin duplicating other Pepsi products (such as
Lays Potato Chips) without a separate agreement. This is an example of:
A) Franchising.
B) Exporting.
C) Licensing.
D) Contract manufacturing.
E) Management contracts.
36. A(n) __________ is formed when companies agree to partner with one another, but do not
set up a separate entity.
A) Joint venture
B) Merger
C) Strategic alliance
D) Sole ownership
E) Task force
37. UNCTAD is an abbreviation for __________.
A) United Nations Conference on Tariff and Development
B) United Nations Conference on Trade and Development
C) United National Conference on Trade and Development
D) United National Conference on Tariff and Development
E) Unified Nations Conference on Trade and Development
Chapter 02 - The Role of Globalization in HR Policy and Practice
[QUESTION]
38. Individuals who are residents of the organization’s home country who are sent offshore on
assignment are called __________.
A) third-country nationals
B) host country nationals
C) parent country nationals
D) parent host nationals
E) third-host nationals
39. Which of the following statement best describes host-country nationals?
A) Individuals who have proven themselves in the local marketplace.
B) Individuals who are residents of the organization’s home country who are sent offshore on
assignment
C) Individuals contributing important information, perspective, and decision-making factors.
D) Individuals attaching more importance to freedom and challenges in job.
E) Individuals who are residents of countries in which a foreign subsidiary is located.
40. When determining how to compensate expatriates, an advantage of the “going-rate approach”
is that
A) the expatriate is kept whole during the assignment because his pay is similar to the pay that
would have been received for working the same job in their home county
B) locals perceive the pay as fair because the expatriate is paid at a rate that is similar to the pay
received by local employees of that company who have similar position, performance and
experience.
C) it is an effective means to reduce costs because you are offering the expatriate the ability to
choose from a variety of benefit options that are appropriate to the location of the expatriate
assignment.
D) although it is a high cost approach, the ability of the expatriate to save on housing and social
expenses while on assignment makes expatriate assignments in countries with low pay levels
more attractive.
E) with the increase in dual income families, this options provides an incentive for both the
employee of the company and their spouse to accept an expatriate assignment
Chapter 02 - The Role of Globalization in HR Policy and Practice
Essay Questions
[QUESTION]
41. Explain the differences between licensing and franchising, licensor and franchiser, and
licensee and franchisee. Use examples to illustrate.
42. What factors influence the decision to invest in a particular international market?
43. Your company has decided to open a branch in another country. As the human resource
manager, it is your job to determine how the foreign subsidiary will interact with the parent
corporation. Define the four international human resource management strategies you may
choose from. Be sure to describe the role both locals and expatriates would play in the
subsidiary's development.
2-11
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
44. List a few reasons for organizations to expand their business interests beyond their national
boundaries?
45. List the five Asian economies expected to share the world's largest economies with the U.S.
by 2020.
46. List few reasons why a company would choose exports as an option for international
commerce.
47. Explain the merits and demerits of licensing and franchising to the licensors, licensees,
franchisors, and franchisees.
Chapter 02 - The Role of Globalization in HR Policy and Practice
2-12
© 2013 by McGraw-Hill Education. This is proprietary material solely for authorized instructor use. Not authorized for sale or distribution in any
manner. This document may not be copied, scanned, duplicated, forwarded, distributed, or posted on a website, in whole or part.
Demerits include: (a) Both parties typically share the revenues, while neither party has full
decision-making authority. (b) Disputes about the terms and conditions of the agreement can
become a problem. (c) Company could find its intellectual property duplicated and sold
everywhere if patents and copyrights are not protected. (d) Licensors and franchisors must make
certain that the required technical skills are available to support the quality of the product or
service.
Page: 37
Level: Hard
[QUESTION]
48. Which are the common areas of conflict in a joint venture?
49. What is the objective of businesses creating offshore professional and operations centers.
50. What differentiates domestic HR from international HR?
