Lussier, Human Resources Management 3e
SAGE Publishing, 2019
Chapter 16: Global Issues for Human Resource Managers
Test Bank
Multiple Choice
1. The term ______ of markets refers to the buying and selling of goods and services
worldwide.
A. globalization
B. complexity
C. parochialism
D. nationalization
2. Having a ______ mind-set is a key standard for contemporary managers.
A. global
B. local
C. narrow
D. national
3. ______ capital includes resources such as timber, water, and minerals that are
components of nature that can be linked with human welfare.
A. Natural
B. Social
C. Manufactured
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
D. Human
4. ______ capital refers to trust, norms, and networks that people can draw upon to
solve common problems and create social cohesion.
A. Natural
B. Social
C. Manufactured
D. Human
5. ______ capital is human-made capital like machines, tools, buildings, and other
infrastructure that are used to produce other assets.
A. Natural
B. Social
C. Manufactured
D. Human
6. ______ capital refers to the health, well-being, and productive potential of individual
people.
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
A. Natural
B. Social
C. Manufactured
D. Human
7. An impetus for increasing ______ over the past 50 years was the changing
disposition toward the use of tariffs and other trade barriers by country governments.
A. globalization
B. complexity
C. parochialism
D. nationalization
8. Around the early to mid-______ countries began forming reasonably large trade blocs
to encourage trade between member countries but discourage trade from outside the
trade blocs through trade barriers.
A. 2000s
B. 1970s
C. 1980s
D. 1990s
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
9. ______ are groups of countries that form an association to facilitate movement of
goods across national borders.
A. Expatriates
B. Ethnocentrics
C. Trade blocs
D. Parochials
10. ______ allow free, or low-cost, passage of goods among member nations.
A. Trade blocs
B. Tariffs
C. Embargoes
D. Ethnocentrics
11. ______ refers to seeing things solely from one’s own perspective.
A. Polycentrism
B. Ethnocentrism
C. Geocentrism
D. Parochialism
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
12. ______ is regarding one’s own ethnic group or culture as superior to that of others.
A. Parochialism
B. Ethnocentrism
C. Geocentrism
D. Polycentrism
13. Ryan’s organization builds new roads and repairs old ones. Ryan’s organization is
involved in the creation of ______ capital.
A. natural
B. social
C. manufactured
D. human
14. The agreement framework signed after World War II that was the basis for an era in
which tariffs and other trade barriers were significantly reduced in much of the world
was called ______.
A. GATT
B. NASA
C. NAFTA
D. WTO
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
15. Which of the following countries is NOT a part of NAFTA?
A. Russia
B. United States
C. Canada
D. Mexico
16. ______ is a negative attitude toward knowledge/technology/products from other
external sources.
A. Ethnocentrism
B. Not-invented-here syndrome
C. Parochialism
D. Xenophobia
17. Around ______% of shoes sold in the United States come from China.
A. 20
B. 40
C. 60
D. 80
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
18. Which of the following is NOT one of the stages in the evolution of a company from
local producer to global firm?
A. domestic
B. international
C. multinational
D. intranational
19. International operations require us to rethink ______ major function(s) in HRM.
A. most
B. few
C. every
D. one
20. Different countries’ employment laws require HR to become competent in legal
issues where the company operates and rethink ______.
A. staffing
B. training
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
C. employee and labor relations
D. compensation
21. Worldwide, the major HR laws tend to be in the areas of staffing, labor relations, and
______.
A. ethics
B. compensation
C. disciplinary action/termination
D. training
22. Geert Hofstede worked for IBM in 1960s and developed a ______.
A. benefits plan
B. employee relations plan
C. code of conduct
D. model of national culture
23. As Hofstede’s research became dated, Project ______ confirmed his dimensions
are still valid today and extended and expanded them.
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
A. HOME
B. GLOBE
C. EARTH
D. WORLD
24. An American employed by a foreign company in a country other than the United
States ______ have the protection of U.S. equal employment opportunity laws.
A. would need to
B. would
C. would not
D. able to
25. The ______ bars U.S.-based or U.S.-listed companies from bribing foreign officials
in exchange for business.
A. Import/Export Act
B. Foreign Corrupt Practices Act
C. Equal Employment Opportunity
D. Fair Credit Act
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
26. ______ refers to a narrow-minded view of the world with an inability to recognize
individual differences.
A. Ethnocentrism
B. Geocentrism
C. Parochialism
D. Culturalism
27. ______ originally identified five dimensions that allow a country culture to be plotted
along a continuum.
A. Project GLOBE
B. Hofstede’s Model of National Culture
C. National Culture
D. Geocentrism
28. Project GLOBE confirmed Hofstede’s research and expanded his five original
dimensions into _____.
A. seven
B. nine
C. ten
D. twelve
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
29. In a high ______ culture, employees expect to receive and carry out orders without
question.
A. masculinity
B. individualism
C. power–distance
D. uncertainty avoidance
30. Evaluating global managers is one of the few occasions when it is necessary to
consider ______.
A. behavior
B. individual traits
C. results
D. ethics
31. In cultures low on Hofstede’s dimension of ______, people believe that the group is
the primary unit of value.
A. masculinity
B. individualism
C. power distance
D. uncertainty avoidance
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
32. At John’s organization, the annual sales prize is very important. Sales people work
hard and compete against one another for the prize. It appears the ______ dimension of
cultural diversity is high at John’s organization.
A. assertiveness
B. future orientation
C. power distance
D. uncertainty avoidance
33. According to the EEOC, “U.S. employers are not required to comply with the
requirements of Title VII, the ADEA, or the ADA” in other countries ______.
A. “if adherence to that requirement would conflict with the employer’s code of conduct”
B. “if adherence to that requirement would violate a law of the country where the
workplace is located”
C. “if adherence to that requirement would jeopardize the employer’s business dealings”
D. “if adherence to that requirement would pose an undue hardship”
34. In many other countries, variable pay has negative connotations, at least in part
because ______.
A. it is illegal
B. it is an individual incentive
C. of negative views of the United States
D. most other cultures prefer praise to tangible rewards
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
35. People who live in a different country where a work assignment will take place are
known as ______ nationals.
A. parent-country
B. host-country
C. home-country
D. third-country
36. People who happen to have a skill set needed for an international assignment but
who are not citizens of either the home or host country are known as ______ nationals.
A. parent-country
B. host-country
C. home-country
D. third-country
37. Businesses that believe in managing globally, using the best people no matter
where they are located, therefore will usually staff international facilities with ______
nationals.
A. parent-country
B. host-country
C. third-country
D. fourth-country
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
38. Firms that generally emphasize adapting to local culture and practices will generally
choose to staff international facilities with ______ nationals.
A. parent-country
B. host-country
C. third-country
D. fourth-country
39. Organizations that tend to believe that their values and culture are superior to those
of others will therefore frequently choose to staff international facilities with ______
nationals.
A. parent-country
B. host-country
C. third-country
D. fourth-country
40. Which of the following is NOT a generic approach to managing a global company?
A. ethnocentric
B. parochial
C. polycentric
D. geocentric
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
41. When considering whose ethical perception should be followed in situations in which
the values in one country conflict with those in another, employees should look to
______.
A. religion
B. personal ethics
C. the organization’s code of conduct
D. local government
42. Japan is a highly ______ culture.
A. nurturing
B. collectivist
C. individual
D. feminine
43. The value in Hofstede’s model is in ______.
A. applying labels to each country
B. identifying countries as either Eastern or Western
C. identifying countries as part of the Global North or Global South
D. knowing how significant the differences are between two countries’ cultures
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
44. ______ traits have been widely regarded as among the most important potential
factors in expatriate adjustment.
A. Hobby
B. Work
C. Personality
D. Motivational
45. ______ organizations tend to believe that their values and culture are superior to
others and choose to staff international facilities with home-country managers.
A. Ethnocentric
B. Geocentric
C. Polycentric
D. Expatriate
46. ______ organizations emphasize adapting to local culture and practices and will
generally choose to hire host-country employees.
A. Geocentric
B. Polycentric
C. Expatriate
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
D. Ethnocentric
47. ______ organizations hire the best people no matter where they are located and
therefore will usually choose to mix in third-country nationals along with parent- and
host-country employees.
A. Polycentric
B. Geocentric
C. Ethnic
D. Ethnocentric
48. Heather is American and works for a U.S.-based company in Brazil. It appears the
company has made a(n) ______ staffing choice.
A. ethnocentric
B. polycentric
C. geocentric
D. domestic
Lussier, Human Resources Management 3e
SAGE Publishing, 2019
49. Macy is English and works for a U.S.-based company in England. It appears the
company has made a(n) ______ staffing choice.
A. ethnocentric
B. polycentric
C. geocentric
D. domestic
50. Ann is American and works for a Singapore-based company in India. It appears the
company has made a(n) ______ staffing choice.
A. ethnocentric
B. polycentric
C. geocentric
D. domestic
51. ______ is the process of hiring another organization to do work that was previously
done within the host organization.
A. Outsourcing
B. Insourcing
C. Onshoring
D. Outshoring