Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
Chapter 16: Opportunities and Challenges in International
HRM
Test Bank
Multiple Choice
1. ______ organizations are humanitarian nonprofit organizations that aim to effect
change in environmental, social, human rights, or other issues.
A. Multinational
B. Transnational
C. International
D. Nongovernmental
2. A company that exports and imports products, but has their investments within one
home country, is ______.
A. international
B. domestic
C. national
D. overseas
3. A company that has a designated headquarters in their home country but operates in
multiple countries is ______.
A. international
B. domestic
C. multinational
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D. transnational
4. A company that operates in multiple countries but does not consider any one country
as the center of operations is ______.
A. international
B. multinational
C. national
D. transnational
5. What is it called when a company produces some of its goods or performs some of its
operations overseas to gain cost advantages?
A. outsourcing
B. offshoring
C. global integration
D. local differential
6. ______ refers to moving some operations of the company to a different company.
A. Offshoring
B. Integrating
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C. Joint venturing
D. Outsourcing
7. A company that repairs computers has grown and no longer finds it efficient to do
payroll in house. The company moves its payroll operations to another company. This is
an example of ______.
A. a strategic alliance
B. a joint venture
C. offshoring
D. outsourcing
8. A company with locations in different countries decides to standardize operations to
create a common corporate culture. What is this an example of?
A. local differentiation
B. a strategic alliance
C. global integration
D. offshoring
9. A global organization that standardizes its HR practices around the world is engaged
in ______.
A. local differentiation
B. global differentiation
C. global integration
D. local integration
10. When a company requires that different locations have similar information on the
corporate website, they are practicing ______.
A. information-based integration
B. people-based integration
C. centralization-based integration
D. formalization-based integration
11. An internationalized company has regular leadership meetings which includes
headquarters and subsidiaries to ensure alignment for the implementation of its diversity
management program. What is this an example of?
A. information-based integration
B. centralization-based integration
C. people-based integration
D. formalization-based integration
12. An internationalized company using the same metrics for performance evaluations
is implementing ______.
A. information-based integration
B. formalization-based integration
C. people-based integration
D. centralization-based integration
13. A diversity program provided by headquarters that is cascaded to other locations is
a form of ______.
A. information-based integration
B. people-based integration
C. information-based integration
D. centralization-based integration
14. In global organizations using ______, HR practices are varied across the
organization in consideration of the local environment.
A. local differentiation
B. global differentiation
C. global integration
D. local integration
15. Allowing subsidiaries to develop their own HR practices is called ______.
A. centralization
B. local differentiation
C. global disintegration
D. fragmentation
16. A benefit of local differentiation is ______.
A. the opportunity to transfer local practices to other locations
B. it allows for telecommuting and other forms of flexible work schedules
C. it centralizes all HR practices under the same policies and procedures across
locations
D. it allows for more informal business practices across different locations
17. What are three reasons a company may find that their best practices in one country
may not be desirable in other countries?
A. cultural differences, unionization rates, and legal context
B. centralized integration, cultural differences, and legal context
C. people, technology, and culture
D. unionization rates, people integration, and legal context
18. The procedures for terminating an employee are a part of the ______
considerations an organization should make when expanding their business practices
across borders.
A. cultural differences
B. unionization rates
C. legal context
D. global integration
19. The rules about working hours, minimum wage, mandatory break periods, and paid
holidays are a part of the ______ considerations an organization should make when
expanding their business practices across borders.
A. cultural differences
B. unionization rates
C. legal context
D. global integration
20. The degree to which individuals define themselves as individuals as opposed to
through their relationships are a part of the ______ considerations an organization
should make when expanding their business practices across borders.
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
A. cultural difference
B. unionization rate
C. legal context
D. global integration
21. What is the assumption that refers to employees having the freedom to join and
leave a company at will and employers having the right to hire and dismiss as they see
fit?
A. right to work
B. gig work
C. employment at will
D. freelance employment
22. Where are there more protections for employees to guard against harm from
employers?
A. United States
B. Europe
C. China
D. India
23. Which country has the lowest union membership rate?
A. Iceland
B. Belgium
C. United States
D. Canada
24. Afkarr leads a company in Iceland. Iceland is a country with a strong tradition of
unions. Therefore, he ensures that there is a/an ______ involved all decision-making
processes so has to maintain a good working relationship with the union.
A. human resource professional
B. manager
C. employee
D. union representative
25. Which cultural dimension, as explained by Hofstede, focuses on hierarchy being
naturally accepted in the workplace?
A. collectivism
B. power distance
C. masculinity
D. uncertainty avoidance
26. According to Hofstede’s dimensions of culture, the degree to which a society uses
traditions to avoid risk is called ______.
A. collectivism
B. individualism
C. power distance
D. uncertainty avoidance
27. According to Hofstede’s dimensions of culture, which country is best described as
highly individualistic, with a high masculine culture, with moderately low values in power
distance and uncertainty avoidance?
A. Colombia
B. United States
C. Canada
D. Slovakia
28. A group reward system would work better in a ______ culture than a pay for
performance system in which high achievers were individually rewarded.
A. collectivist
B. high power distance
C. high uncertainty avoidance
D. masculine
29. According to Hofstede’s dimensions of culture, ______ is the degree to which
individuals define themselves singularly as opposed to through their relationships.
A. masculinity
B. power distance
C. individualism
D. collectivism
30. According to Hofstede’s dimensions, cultures with high ______ emphasize loyalty to
the group, face-saving, and cooperation within the in-group.
A. collectivism
B. power distance
C. uncertainty avoidance
D. masculinity
31. According to Hofstede’s dimensions of culture, ______ is the degree to which a
society embraces values such as achievement and materialism.
A. femininity
B. power distance
C. uncertainty avoidance
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D. masculinity
32. According to Hofstede’s dimensions of culture, ______ is the degree to which a
society embraces values modesty, caring for the weak, and the quality of life.
A. femininity
B. power distance
C. uncertainty avoidance
D. masculinity
33. When a subsidiary requires close coordination with the parent company, which is
most likely to occur?
A. local differentiation
B. global integration
C. collectivism
D. outsourcing
34. In internationalization, ______ give the parent company full control over their
overseas operations.
A. joint ventures
Bauer, Human Resource Management, 1e
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B. strategic alliances
C. multinational branches
D. wholly owned subsidiaries
35. What is it called when two companies come together to form a new company?
A. wholly owned subsidiary
B. joint venture
C. global organization
D. outsourced agreement
36. Giving employees anonymous ways of reporting unethical behaviors could help with
the ______ aspect of enforcing a culture of ethics and integrity in global organizations.
A. commit to a culture of integrity
B. eliminate undue performance pressures
C. provide training and policies
D. eliminate a culture of silence
37. Teaching employees what to do when confronted with questionable requests could
help with the ______ aspect of enforcing a culture of ethics and integrity in global
organizations.
A. commit to a culture of integrity
B. eliminate undue performance pressures
C. provide training and policies
D. eliminate a culture of silence
38. Which is an example of an organizational advantage to working in multiple
geographies?
A. wider talent pool
B. standardization
C. legal context
D. local adjustments
39. In areas where education and people with job readiness skills are limited, what can
organizations do to develop the necessary talent?
A. offer tuition reimbursement
B. offer more competitive salaries
C. offer in-house training
D. offer better benefits
40. Multinationals must consider how extrinsic rewards fit with a given ______ to attract
and retain talent.
A. cultural context
B. pay scale
C. workplace condition
D. financial system
41. Which is similar to a union?
A. a joint venture
B. a subsidiary
C. a works council
D. a strategic alliance
42. According to the textbook, many people in the countries of the European Union view
employment as ______.
A. a fundamental right
B. a union opportunity
C. a burden
D. a privilege
43. Which law in European Union countries gives employees more power over how their
personal data are handled?
A. Personal Data Protection Grid
B. Employee Data Protection Act
C. General Data Protection Regulation
D. EU Data Protection Act
44. A person who is living and working in a different country than their country of origin
is referred to as a(n) ______.
A. trader
B. expatriate
C. inpatriate
D. outsourced employee
45. Expatriate assignments are usually ______.
A. less than 3 months
B. no more than 3 months
C. no more than 6 months
D. longer than 6 months
46. In multinational enterprises, expatriates are ______ or sent by the organization for a
predetermined time to work in an overseas operation.
A. self-initiated
B. organizationally assigned
C. offshored
D. exiled
47. Why might a skilled professional voluntarily move to another country to work?
A. to vacation
B. for better benefits
C. for health reasons
D. to gain overseas experience
48. A person who voluntarily moves to another country to gain overseas work
experience is called ______.
A. a self-initiated expatriate
B. organizationally assigned
C. offshored
D. outsourced
49. One way global organizations can close a skill gap is by ______.
A. discouraging knowledge diffusion
B. decreasing research efforts
C. using expatriate assignments
D. limiting training to the best talent
50. An inpatriate is ______.
A. seen as competition by headquarters
B. an employee from a host country working at headquarters
C. is often assigned from headquarters to work overseas
D. a disadvantage when it comes to facilitating knowledge transfer
51. An inpatriate’s role is often to facilitate ______.
A. knowledge transfer from local operations to headquarters
B. knowledge from headquarters to other organizations
C. local shortcuts for responding to organizational pressures
D. ethical practices transfer
52. Using expatriate assignments works best for transferring ______.
A. technical knowledge
B. cultural context
C. locational-specific information
D. regional practices
53. It is estimated that expatriate assignments may cost at least ______ the salary of
the employee.
A. half
B. twice
C. triple
D. quadruple
54. For an expatriate, ______ refers to adjusting to the new culture one is now living in,
including factors such as transportation, entertainment, health system, education, and
general living conditions.
A. culture shock
B. work adjustment
C. interactional adjustment
D. cultural adjustment
55. Expatriates experience many day–to-day issues related to adjustment. Adjusting to
the health system and general living conditions in a different country is an example of a
______.
A. work adjustment
B. interactional adjustment
C. family adjustment
D. cultural adjustment
56. When expatriates adjust to living in a new country, they develop a new comfort level
at work and with their new tasks. This is an example of ______.
A. a work adjustment
B. a cultural adjustment
C. an interactional adjustment
D. language adjustment
57. When expatriates adjust to living in a new country, they develop a comfort level
getting along with local people inside or outside of work. This is an example of ______.
A. cultural adjustment
B. interactional adjustment
C. work adjustment
D. language adjustment
58. For an expatriate, ______ involves feeling comfortable at work and with one’s new
tasks.
A. cultural adjustment
B. work adjustment
C. interactional adjustment
D. reverse culture shock
59. When an expatriate moves without their family to a new country, they run the risk of
______.
A. social isolation
B. cultural assimilation
C. financial complications
D. reverse culture shock
60. Research shows that the biggest influence over an expatriate’s cultural adjustment
is the adjustment of the ______.
A. work environment
B. expatriate to the job
C. spouse
D. extended family left behind
61. Research shows that language ability has more impact on ______ than on work
adjustment for the employee.
A. interactional and cultural adjustment
B. interactional and spouse adjustment
C. cultural and educational adjustment
D. interactional and compensation adjustment
62. Being ______ helps expatriates seek support from locals and adjust better to their
new surroundings.
A. conscientious
B. thoughtful
C. sociable
D. sensitive
63. The two most important job-related factors for expatriates are ______.
A. salary and insurance
B. role clarity and salary
C. role discretion and role clarity
D. role discretion and salary
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
64. For successful adjustment of expatriates to their work, two sources of organizational
support seem critical: support of the host country employees and support from ______.
A. the organization itself
B. host country management
C. host country people outside the organization
D. host country neighbors
65. What is usually the result when an expatriate feels cared for and valued by their
organization?
A. lower levels of performance
B. higher levels of adjustments
C. higher demands for compensation
D. lower levels of investment
66. Which type of mind-set is indicative of a successful expatriate?
A. global
B. dreamer
C. introverted
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D. leader
67. Irene enjoys meeting new people and forms relationships quickly. She is going to
Germany to work for the next 3 years. Given Irene’s personality, without cultural
training, what is likely to happen when she realizes that relationships are formed at a
much slower pace in Germany?
A. poor role discretion
B. unclear role expectations
C. frustration with the organization
D. culture shock
68. According to the textbook, a danger an expatriate could face in Latin America and
Eastern Europe is an express kidnapping where they are ______.
A. briefly held for ransom
B. forced to walk to an ATM and withdraw cash
C. forced to hand over their passport and other identity papers
D. held until they pay for their own release
69. When an expatriate returns home, they may feel like things have changed so much
that their country of origin no longer feels like home. What does this describe?
A. culture shock
B. reverse culture shock
C. cultural adjustment
D. interactional adjustment
70. Short-term assignments are better for containing costs and reducing the disruption
of long-term stays on ______.
A. the local culture and business community
B. the organization and local community
C. local employees and their families
D. employees and their families
True/False
1. Private sector and for-profit organizations are the only two types of companies that
engage in internationalization.
2. Companies find that it is cheaper to avoid offshoring work than it is to send work
overseas.
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
3. Global integration of HR practices ensures that a company establishes a common
corporate culture and common ways of doing business.
4. Human resource practices are the same as human resource philosophy.
5. Businesses in the United States have a lot of freedom regarding talent management.
6. There are more protections for employees in Europe than in the United States.
7. In Europe, laws require most companies to establish employee representation
committees. This means businesses need to involve union representatives in a more
participatory approach to management.
8. It is not uncommon for some cities within the same country to have different cultural
values.
9. Someone who is considered a freelance worker in the United States may be
considered an employee in a different national context.
10. The degree to which the local labor market meets the multinational needs for the
right employment mix in overseas operations varies by industry and geography.
11. Employee separations from employers are handled the same way around the world.
12. A U.S. citizen who lives and works in the United States is called an expatriate.
13. It is usually beneficial to send an expatriate overseas to work on a marketing
assignment that requires cultural knowledge and adaption.
14. Assigning employees to overseas positions on a long-term basis can be disruptive
for the employee and their family.
Bauer, Human Resource Management, 1e
SAGE Publishing, 2020
15. Cross-border commuter arrangements are usually a cost-effective solution for
employees who live in one country and work in another.
1. Compare and contrast the relationship between offshoring and outsourcing?
2. Examine the dimensions of culture based on Hofstede’s framework.
3. Examine how multinational companies often differentiate their reward systems and
benefits around the world to fit the national context.
4. As a human resource professional, how would you compile a compensation package
for an expatriate and explain what would be included?
5. Compare the effectiveness of long-term overseas assignments for employees to
short-term assignments.
