Human Resource Management, 15e (Martocchio)
Chapter 14 Global Human Resource Management
1) Dailey Enterprises is a mid-sized business that is considering expanding its operations
globally. Which of the following is LEAST likely to occur as a result of Dailey globalizing?
A) improved selection process
B) some protection against domestic business cycles
C) increased competitiveness
D) increased profitability
2) Research shows that ________ of the total amount of consumers worldwide reside in the
United States.
A) 15 percent
B) 5 percent
C) 10 percent
D) 29 percent
3) Jenny’s Jewelry is a small firm that sells its products abroad, either directly or indirectly, by
retaining foreign agents and distributors. Jenny’s Jewelry is most likely involved in ________.
A) foreign investing
B) exporting
C) licensing
D) franchising
4) Hartford Toys is a small business that wants to enter the global market. What is the most
common way for small businesses such as Hartford Toys to enter the global market?
A) foreign investing
B) licensing
C) exporting
D) franchising
5) Modern Mosaics, an American firm, has granted a Chinese firm the right to use the Modern
Mosaics manufacturing processes for a specific period of time. Modern Mosaics is most likely
involved in ________.
A) foreign investing
B) exporting
C) licensing
D) franchising
6) An arrangement whereby the parent company grants another firm the right to do business in a
prescribed manner is referred to as ________.
A) foreign investing
B) exporting
C) licensing
D) franchising
7) Which of the following would most likely globalize through licensing?
A) fast food restaurant
B) telemarketing firm
C) luxury hotel chain
D) electronics manufacturer
8) Franchising would most likely be used to globalize by a ________.
A) fast food restaurant
B) commercial bank
C) health insurance firm
D) toy manufacturer
9) Which of the following is based in one country (the parent or home country) and produces
goods or provides services in one or more foreign countries (host countries)?
A) global investment corporation
B) multinational corporation
C) foreign exporter
D) franchise
10) PEC Enterprises is based in the United States and produces plastic cooking utensils at plants
in Taiwan and India. All operations are coordinated from the firm’s U.S. headquarters. PEC
Enterprises is most likely a(n) ________.
A) franchiser
B) export/import firm
C) transnational corporation
D) multinational corporation
11) What type of firm directs manufacturing and marketing operations in several countries, and
these operations are coordinated by a parent company, usually based in the firm’s home country?
A) global investment
B) foreign corporation
C) multinational corporation
D) international corporation
12) Wilson Enterprises has corporate units in a number of countries that are integrated to operate
as one organization worldwide. Wilson Enterprises is most likely a(n) ________.
A) global corporation
B) multinational corporation
C) foreign corporation
D) international corporation
13) Which of the following sells similar products throughout the world with components that are
made in different countries?
A) foreign corporation
B) multinational corporation
C) international corporation
D) global corporation
14) Procter & Gamble is best categorized as a ________ corporation.
A) foreign–based
B) multinational
C) global
D) national
15) Companies that engage in the global economy place even greater emphasis on ________.
A) foreign language skills
B) talent mobility
C) strategic HRM
D) benefits
16) Companies’ considerations that range from cultural to political barriers to demographic
considerations in the workforce and international aspects such as compensation describe
________.
A) international global executive compensation
B) global human resource management
C) global employment laws
D) global employment relations
17) The U.S. economy is based on the idea of ________.
A) capitalism
B) communism
C) democracy
D) republicanism
18) Which of the following statements is TRUE about the role of international sales for small
and medium-sized businesses?
A) International sales are not easily facilitated through e-commerce.
B) International sales have become a vital and growing part of the market for small to medium–
sized businesses.
C) International sales require a change in a country’s legal system.
D) International sales have become a vital and growing part of the market exclusively for large
businesses.
19) What is the foundation for the political systems in the United States and China, respectively?
A) socialism, communism
B) democracy, socialism
C) democracy, communism
D) republican, democrat
20) Which of the following is NOT a factor that sets the stage for global HR practice?
A) country’s economic structure
B) political system
C) age of the company
D) characteristics of the labor force
21) ________ percent of Chinese women aspire to top-level positions.
A) 52
B) 76
C) 40
D) 38
22) Licensing entails selling abroad, either directly or indirectly, by retaining foreign agents and
distributors. It is a way that many small businesses enter the global market.
23) Exporting is an arrangement whereby an organization grants a foreign firm the right to use
intellectual properties such as patents, copyrights, manufacturing processes, or trade names for a
specific period of time.
24) Licensing is typically used by manufacturing firms that want to globalize.
25) A multinational corporation is based in one country and produces goods or provides services
in one or more foreign countries.
26) An organization that has corporate units in a number of countries that are integrated to
operate as one organization worldwide is a multinational corporation.
27) Franchising is an option whereby the parent company grants another firm the right to do
business in a prescribed manner.
28) The functional areas in global human resource management are unlike those in domestic
human resource management because of cultural and economic differences around the world.
29) Discuss the role of strategic human resource management in global business.
30) Identify and define the three ways in which companies can enter global markets without
making substantial investments.
31) What is a global corporation? Explain the staffing approach commonly used by global
corporations.
32) Shelby Enterprises is a global corporation that has a fully functioning HR department in each
of its foreign subsidiaries. Host-country nationals are employed throughout the firm. Which
staffing approach is most likely used by Shelby?
A) biocentric
B) geocentric
C) polycentric
D) ethnocentric
33) In which country can prospective employers ask job applicants to report personal
characteristics such as age and marital status?
A) United States
B) India
C) United Kingdom
D) all of the above
34) All of the following are national/cultural values EXCEPT ________.
A) job satisfaction
B) masculinity/feminity
C) accomplishing indulgence/restraint
D) individualism/collectivism
35) Which of the following statements best describes a masculine culture in modern times?
A) Masculine cultures place high value on achievement, material award, and assertiveness.
B) Masculine cultures emphasize quality of life and assertiveness
C) Maintaining impersonal relationships to promote group productivity.
D) Masculine cultures emphasize taking on new experiences and seeking material reward.
36) China’s labor force consists of a multitude of older workers for the following reason:
________.
A) communism favors taking care of younger citizens by having parents and grandparents
employed
B) economic growth has led employers to favor workers with greater experience
C) it is more common for Chinese citizens to stay in school longer than citizens of other
countries
D) Chinese government’s one-child policy has left a substantial gap in younger generations
37) In which country has economic growth been affected by the widespread return of unskilled
factory workers from large cities to rural farming locations?
A) United States
B) Germany
C) China
D) India
38) Female employment in the United Arab Emirates is negatively influenced because
________.
A) a single woman is not permitted to drive
B) a woman’s desire to stay at home to raise children is stronger than her desire to work outside
the home
C) a single woman cannot board a plane or stay in a hotel unless a male relative is willing to
accompany her
D) it is frowned upon when a woman places aging parents in a nursing home
39) Data protection laws in ________ conflict directly with the Sarbanes-Oxley Act.
A) the United Kingdom
B) Canada
C) France
D) Mexico
40) Which two global staffing approaches are most similar?
A) regiocentric staffing and polycentric staffing
B) regiocentric staffing and ethnocentric staffing
C) regiocentric staffing and allocentric staffing
D) ethnocentric staffing and polycentric staffing
41) Which of the following is NOT a type of global staff member?
A) expatriate
B) contingent worker
C) third-country national
D) host-country national
42) An employee who is not a citizen of the country in which the firm is located, but is a citizen
of the country in which the organization is headquartered is referred to as a(n) ________.
A) host-country national
B) third-country national
C) expatriate
D) operant
43) The U.S. expatriate population has grown rapidly in recent years because of the large
numbers being sent to ________.
A) Russia and Italy
B) China and India
C) France and Mexico
D) China and Taiwan
44) Murphy Enterprises recently acquired a controlling interest in Mexico’s leading clothing
retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy’s
top executives advocate the idea of transferring U.S. managers to Mexico to oversee the
construction and opening of the new stores. Another group of Murphy executives believe that
host-country nationals should manage the project. Which of the following best supports a
decision to fill management positions with expatriates?
A) Murphy needs to ensure that Mexico operations are closely linked to headquarters.
B) Most Murphy expatriates resign within one year of their return to the United States.
C) Murphy wants to develop close community relationships in Mexico.
D) Employees hired by Murphy are provided extensive training.
45) Murphy Enterprises recently acquired a controlling interest in Mexico’s leading clothing
retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy’s
top executives advocate the idea of transferring U.S. managers to Mexico to oversee the
construction and opening of the new stores. Another group of Murphy executives believe that
host-country nationals should manage the project. Which of the following questions is LEAST
relevant to the decision to fill management positions in Mexico with expatriates or host-country
nationals?
A) What are Murphy’s anticipated relocation costs for using expatriates?
B) What degree of corporate control does Murphy want in Mexico?
C) What is the global safety and health record for Murphy?
D) What is the attrition rate for Murphy’s expatriates?
46) Murphy Enterprises recently acquired a controlling interest in Mexico’s leading clothing
retailer. Murphy plans to open additional retail stores in the next three years. Some of Murphy’s
top executives advocate the idea of transferring U.S. managers to Mexico to oversee the
construction and opening of the new stores. Another group of Murphy executives believe that
host-country nationals should manage the project. Which of the following best supports a
decision to fill management positions in Mexico with host-country nationals?
A) Murphy’s marketing department created a new advertising campaign for the Mexican
audience.
B) Murphy’s HR department is translating the firm’s e–learning programs from English to
Spanish.
C) Murphy plans to direct operations in Mexico from the firm’s U.S. headquarters.
D) Murphy is establishing a fully functioning HR department in Mexico.