Q&A Hero

Q: In international business, a foreign branch owned fully by the home office is referred to as a(n) ________.

Q: When a country's political situation is unstable, it is best to use expatriates in top management positions.

Q: Some of the advantages of using local employees to staff international subsidiaries are lower labor costs, the demonstration of trust in the local citizenry, and the increased acceptance of the company by the local community.

Q: In the geocentric approach, international subsidiaries are managed and staffed by personnel from the host country.

Q: Sun Electronics is a South Korean firm. The HR director, VP of operations, and production staff at the firm's U.S. facility are South Koreans. Sun Electronics is most likely using a polycentric approach to managing its U.S. facility.

Q: Additional Case 17.2 Golden Rod is an electronics firm based in Detroit with subsidiaries in several countries including Indonesia, Egypt, Argentina, and Thailand. The top management positions in these subsidiaries are filled by U.S. citizens. Golden Rod is planning on creating a new expatriate assignment in Egypt. The firm has created a selection board of expatriates to choose the best person for the job. In the past, Golden Rod has experienced a high turnover rate among repatriated managers, so executives hope to solve this problem. Refer to Additional Case 17.2. Golden Rod seems to use which of the following approaches to manage international subsidiaries? A) The geocentric approach B) The polycentric approach C) The ethnocentric approach D) The intranational approach

Q: Additional Case 17.1 Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe. Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project. Refer to Additional Case 17.1. Which of the following best supports the decision to fill management positions in India with host-country nationals? A) Hollar wants to exhibit trust in the local citizenry. B) Hollar wants to maintain significant control from headquarters. C) Hollar anticipates extensive government intervention. D) Hollar's domestic and foreign operations are highly interdependent.

Q: Additional Case 17.1 Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe. Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project. Refer to Additional Case 17.1. Which of the following questions is LEAST relevant to the decision to fill management positions in India with expatriates or host-country nationals? A) What is the turnover rate for repatriated Hollar employees? B) What is the international health and safety record at Hollar? C) How important is it for Hollar to earn community acceptance? D) What relocation and salary costs would be incurred by Hollar?

Q: Additional Case 17.1 Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe. Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project. Refer to Additional Case 17.1. Which of the following best supports the decision to fill management positions in India with expatriates? A) Hollar desires a greater understanding of local conditions and customs. B) Hollar needs to ensure a smooth transfer of business and management practices. C) Hollar wants to reduce the firm's compensation costs related to construction of the plant. D) Hollar's most globally skilled managers are part of dual-career couples with small children.

Q: It is best to use an expatriate when: A) the international and domestic units are highly independent. B) the political situation is unstable. C) there are minimal cultural differences between the host and home countries. D) a shared corporate identity is not important.

Q: The use of local nationals as managers in foreign subsidiaries will most likely: A) act as a disincentive to local morale and motivation. B) create problems of adaptability due to the lack of cultural flexibility. C) lead to the postponement of difficult local decisions until they are unavoidable. D) lead to increased government restrictions regarding transfers, salaries, and taxes.

Q: Which of the following is an advantage of using local employees in international subsidiaries? A) Difficult decisions are often handled earlier by local employees than by expatriates. B) A local manager is better able to balance local demands with the firm's international priorities. C) Using a local employee ensures transfer of management practices from the home company to the subsidiary. D) Using local employees increases the community's acceptance of the company as a legitimate participant in the local economy.

Q: Which of the following is an advantage of using expatriates in international subsidiaries? A) Labor costs are lower for an expatriate than for a local worker. B) Using an expatriate increases recognition of the company within the local community. C) An expatriate allows the home company to maintain close control of the foreign subsidiary. D) The use of an expatriate increases the motivation and morale of local managers and workers.

Q: It has been estimated that using an expatriate costs ________ more than a local employee. A) 200%-400% B) 500%-1,000% C) 1,000%-2,000% D) 3,000%-5,000%

Q: When General Electric chose to staff its Hungarian subsidiary with Hungarian nationals, it was using a(n) ________ approach to management. A) ethnocentric B) polycentric C) geocentric D) multinational

Q: Van Siclen and Company is a German firm that fills top management and other key positions with Germans. Van Siclen is most likely using a(n) ________ approach to managing its international subsidiaries. A) ethnocentric B) polycentric C) geocentric D) multinational

Q: Brantley Services deliberately downplays the fact that it is a U.S. firm and actively searches internationally to fill key positions with the best people. Brantley is most likely using a(n) ________ approach to management. A) ethnocentric B) polycentric C) geocentric D) multinational

Q: The stage of international involvement at which a company first starts a joint venture, if it chooses to do so, is most likely stage: A) 1. B) 2. C) 3. D) 4.

Q: A ________ is a company that is partly owned by a host country firm and partly owned by another firm, or a consortium of firms. A) joint venture B) multinational corporation C) transnational corporation D) multidomestic company

Q: What are the five dimensions of culture identified by Geert Hofstede? How can an awareness of these dimensions benefit a firm in stage 5 of internationalization?

Q: Identify the characteristics of companies in various stages of internationalization. How should a firm's HRM practices be adapted for each of the five stages of internationalization?

Q: A(n) ________ is a firm with operations in many countries and highly decentralized operations.

Q: A firm with assembly and production facilities in several countries and regions of the world is referred to as a(n) ________.

Q: A(n) ________ is a citizen of one country living and working in another country.

Q: In most firms, expatriates are used for top management positions in international subsidiaries.

Q: The most advanced stage of internationalization is when a firm's operations are highly decentralized, each business unit makes its own personnel decisions, and each branch has weak ties to any given country, including its country of origin.

Q: A company in Stage 2 of internationalization physically moves some of its operations out of the home country.

Q: Cartoon Corporation has its production facilities in the United States but is expanding into foreign markets. Cartoon is in Stage 1 of internationalization.

Q: Additional Case 17.1 Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe. Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project. Refer to Additional Case 17.1. Prior to being purchased by Hollar, Tyro was most likely in which stage of internationalization? A) Stage 1 B) Stage 2 C) Stage 3 D) Stage 4

Q: Additional Case 17.1 Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe. Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project. Refer to Additional Case 17.1. In which stage of internationalization is Hollar, Inc.? A) Stage 2 B) Stage 3 C) Stage 4 D) Stage 5

Q: All of the following are common problems faced by small and medium-size enterprises attempting to internationalize EXCEPT: A) inability to develop a product with global appeal. B) lack of knowledge about foreign regulations. C) inability to delegate control to expatriates. D) lack of cross-cultural skills.

Q: All of the following are key concerns about global outsourcing EXCEPT: A) online security threats. B) unqualified employees. C) inadequate quality control. D) lack of legislative oversight.

Q: Which of the following is commonly used to lower labor costs by firms in stages 3, 4, and 5 of internationalization? A) Exporting B) Decentralization C) Outsourcing D) Codetermination

Q: Which term refers to a firm with highly decentralized operations in many countries and weak ties to any single country? A) Subsidiary B) Joint venture C) Multinational corporation D) Transnational corporation

Q: Which of the following countries is NOT included in NAFTA? A) China B) Canada C) Mexico D) United States

Q: Hewit Computers makes most personnel decisions that affect its foreign branches through an international personnel department located at corporate headquarters in Texas. Hewit's foreign operations are managed primarily by expatriates. Hewit Computers is most likely in stage ________ of internationalization. A) 2 B) 3 C) 4 D) 5

Q: HRM strategies at stage ________ of internationalization are designed to blend individuals of diverse backgrounds into a team sharing a vision and corporate identity. A) 2 B) 3 C) 4 D) 5

Q: Which of the following best describes a transnational corporation? A) A company that exports its products to several countries and regions of the world B) An international business consisting of a foreign branch owned partly by the home office and partly by an entity in the host country C) A firm with assembly and production facilities in several countries and regions of the world D) A highly decentralized firm that has operations in many countries and owes very little allegiance to any country

Q: Which of the following best describes a multinational corporation? A) ION Enterprises has assembly and production facilities in several countries and regions of the world. B) Avery Shoes exports its products to several countries and regions around the world. C) Wilton Paper is a highly decentralized firm that has operations in many countries and little allegiance to any country. D) Formby Manufacturing is an international business consisting of a foreign branch owned partly by the home office and partly by an entity in the host country.

Q: Which term refers to employees who are citizens of one country that are living and working in another country? A) Domestics B) Expatriates C) Transnationals D) Host-country nationals

Q: For companies in stage ________ of the internationalization process, HRM practices must focus on the selection, training, and compensation of expatriate managers, as well as the development of policies for employees of foreign facilities. A) 1 B) 2 C) 3 D) 5

Q: Electra, Inc. is a company in an advanced stage of internationalization. It has little allegiance to its country of origin, decentralized operations, relatively independent business units, and weak ties to any given country. This company is most likely in stage ________ of international involvement. A) 2 B) 3 C) 4 D) 5

Q: The fourth stage of internationalization is marked by the company: A) moving some of its operations out of the home country. B) having production facilities in several countries of the world. C) having highly decentralized operations and showing little allegiance to the country of origin. D) expanding into foreign markets but retaining its production facilities in the home country.

Q: When in stage ________ of internationalization, HRM practices should facilitate exporting the firm's products through incentives, training, and staffing strategies that focus on the needs of international customers. A) 1 B) 2 C) 3 D) 4 E) 5

Q: A company is in the second stage of internationalization when: A) the company moves some of its operations out of the home country. B) the company has production and assembly facilities in several countries and is part of strategic alliances with other international companies. C) the company's operations are highly decentralized, there is little allegiance to the country of origin, and its managers see themselves as citizens of the world. D) a firm expands into foreign markets but retains its production facilities in the home country.

Q: Picture Perfect's market is exclusively domestic. Its plant locations all lie within the boundaries of its own nation. This company is in stage ________ of international involvement. A) 1 B) 2 C) 3 D) 4

Q: A firm that only does business domestically is in stage ________ of internationalization. A) 1 B) 2 C) 3 D) 4

Q: A company-sponsored program that focuses on preventing health problems in employees is called a(n) ________.

Q: Depressed employees have a tendency to be absent from work but are not typically prone to more accidents.

Q: The increasing incidence and severity of stress-related workers' compensation claims has led many firms to create EAPs.

Q: Safety committees are collaborative efforts between employees and managers to police safety standards within a firm and report potential problems to OSHA.

Q: Additional Case 16.2 John is the newly hired director of HR at Richmond Manufacturing, and he is in the process of learning about the firm's HR policies and procedures and determining what areas need improvement. John learns from his staff that the firm's workers' compensation rates have risen dramatically in recent years due to rising claims. The firm has not received any OSHA citations, and most claims have been related to employee mistakes. Many HR staff members suspect that burnout, substance abuse, and depression are the primary causes of worksite accidents at Richmond. Although Richmond established a safety program two years ago, workplace accidents continue to occur at a significant rate. John is considering the idea of establishing an EAP at Richmond. Refer to Additional Case 16.2. If Richmond develops an EAP, it will be most important for managers to realize that they should: A) review employees' medical histories before referring them to the program. B) offer financial incentives for employees who regularly participate in the program. C) refer employees to the program based on work-related performance issues. D) make employee referrals to the program at the first sign of emotional instability.

Q: Additional Case 16.2 John is the newly hired director of HR at Richmond Manufacturing, and he is in the process of learning about the firm's HR policies and procedures and determining what areas need improvement. John learns from his staff that the firm's workers' compensation rates have risen dramatically in recent years due to rising claims. The firm has not received any OSHA citations, and most claims have been related to employee mistakes. Many HR staff members suspect that burnout, substance abuse, and depression are the primary causes of worksite accidents at Richmond. Although Richmond established a safety program two years ago, workplace accidents continue to occur at a significant rate. John is considering the idea of establishing an EAP at Richmond. Refer to Additional Case 16.2. John is most likely hoping that an EAP will: A) eliminate the need to carry workers' compensation insurance. B) provide confidential treatment for employees with substance abuse problems. C) prevent health problems by proactively encouraging and training employees to lead healthier lives. D) help employees whose job performance is suffering due to physical, mental, or emotional problems.

Q: Additional Case 16.2 John is the newly hired director of HR at Richmond Manufacturing, and he is in the process of learning about the firm's HR policies and procedures and determining what areas need improvement. John learns from his staff that the firm's workers' compensation rates have risen dramatically in recent years due to rising claims. The firm has not received any OSHA citations, and most claims have been related to employee mistakes. Many HR staff members suspect that burnout, substance abuse, and depression are the primary causes of worksite accidents at Richmond. Although Richmond established a safety program two years ago, workplace accidents continue to occur at a significant rate. John is considering the idea of establishing an EAP at Richmond. Refer to Additional Case 16.2. Which of the following best supports the idea that many workplace accidents at Richmond are caused by burnout, substance abuse, and depression? A) Turnover at Richmond is low for the industry. B) Domestic violence is a problem for many Richmond employees. C) Richmond has a high rate of absenteeism among its employees. D) Most Richmond employees do not participate in the wellness program.

Q: Additional Case 16.2 John is the newly hired director of HR at Richmond Manufacturing, and he is in the process of learning about the firm's HR policies and procedures and determining what areas need improvement. John learns from his staff that the firm's workers' compensation rates have risen dramatically in recent years due to rising claims. The firm has not received any OSHA citations, and most claims have been related to employee mistakes. Many HR staff members suspect that burnout, substance abuse, and depression are the primary causes of worksite accidents at Richmond. Although Richmond established a safety program two years ago, workplace accidents continue to occur at a significant rate. John is considering the idea of establishing an EAP at Richmond. Refer to Additional Case 16.2. Which of the following actions should most likely be taken by Richmond's safety committee? A) Reviewing accidents and making safety suggestions B) Enforcing safety policies in all departments C) Serving as OSHA inspectors and arbitrators D) Auditing workers' compensation cases

Q: Additional Case 16.2 John is the newly hired director of HR at Richmond Manufacturing, and he is in the process of learning about the firm's HR policies and procedures and determining what areas need improvement. John learns from his staff that the firm's workers' compensation rates have risen dramatically in recent years due to rising claims. The firm has not received any OSHA citations, and most claims have been related to employee mistakes. Many HR staff members suspect that burnout, substance abuse, and depression are the primary causes of worksite accidents at Richmond. Although Richmond established a safety program two years ago, workplace accidents continue to occur at a significant rate. John is considering the idea of establishing an EAP at Richmond. Refer to Additional Case 16.2. Which of the following is the most likely reason that Richmond's safety program is ineffective? A) Most injured employees are unaware of EAP opportunities. B) The safety committee consists of line managers and top executives. C) The firm rewards its best truck drivers with gift cards and plaques. D) Online safety training programs and demonstrations are available to all employees.

Q: Which of the following aspects of a corporate wellness program would most likely be illegal? A) Rewarding employee participation B) Punishing employees for unhealthy behavior C) Asking employees to complete a health assessment D) Offering insurance premium deductions to participants

Q: A complete wellness program does a number of things, one of which is: A) helping companies maintain their current level of benefits. B) eliminating competition for personal leave and vacation. C) recognizing employee accomplishments and achievements on the job. D) educating employees about health risks and identifying those risks through testing.

Q: Wellness programs are primarily designed to: A) eliminate violence in the workplace by identifying and treating potentially violent employees. B) create drug-free working environments by providing confidential treatment for employees with substance abuse problems. C) help companies lower health-care costs by proactively working to prevent health problems. D) help employees whose job performance is suffering due to physical, mental, or emotional problems.

Q: Wellness programs: A) often duplicate the efforts of EAPs. B) are an effort to reduce health-care costs. C) have grown in response to pressure from OSHA. D) usually have significant short-range positive results.

Q: Most employees who take advantage of wellness programs: A) are already health conscious and have healthy habits. B) receive no benefit from their participation. C) are required to do so by their company. D) are seeking treatment for physical problems.

Q: Khalil's performance has become increasingly poor. He is arguing with clients, and his co-workers are uncomfortable around him because of his displays of temper. Khalil's supervisor asks you, the HR manager, how to improve the situation. You should most likely suggest that the supervisor: A) refer Khalil to an EAP on the basis of emotional problems. B) encourage Khalil to work the problem out himself. C) refer Khalil to an EAP on the basis of his poor performance. D) give Khalil a sabbatical that is effective immediately.

Q: Which of the following is the LEAST likely warning sign of depression? A) Chest pains B) Absenteeism C) Accident proneness D) Forgetfulness

Q: Employee burnout: A) causes mental but not physical problems. B) is the leading cause of workplace violence. C) cannot be effectively treated by an EAP. D) negatively affects employee performance.

Q: Stress often results in ________, a syndrome characterized by emotional exhaustion and reduced personal accomplishment. A) anxiety B) burnout C) depression D) situational sickness

Q: Many firms create EAPs because such programs are: A) required by the Drug-Free Workplace Act. B) strongly recommended by OSHA and the ADA. C) tools for protecting workers' physical and mental health. D) cost-effective ways to improve productivity and quality.

Q: Employee Assistance Programs (EAPs) are primarily designed to: A) eliminate violence in the workplace by identifying and treating potentially violent employees. B) create drug-free working environments by providing confidential drug treatment for employees. C) prevent health problems by proactively encouraging and training employees to lead healthier lives. D) help employees whose job performance is suffering due to physical, mental, or emotional problems.

Q: Lionel Electrical has recently developed a comprehensive safety program. Which of the following is LEAST likely to occur at the firm as a result? A) Reducing accident-related costs B) Conducting fewer safety inspections C) Experiencing fewer employee accidents D) Receiving fewer workers' compensation claims

Q: In order to be the most effective, a company's safety committee should consist of: A) line managers who provide personal protective equipment. B) managers and employees who mete out punishments for safety violations. C) managers and employees who evaluate safety procedures and review accidents. D) upper level managers who communicate health and safety rules and monitor work sites.

Q: An effective safety program: A) requires a safety director to attend meetings with OSHA representatives. B) includes a safety committee made of employees from all departments. C) lets safety be its own reward for employees' safe performance. D) enforces safety rules randomly and with flexibility.

Q: It is most critical to gather the input of ________ when developing an effective safety program. A) the CEO B) line workers C) HR representatives D) middle management

Q: What is an employee assistance program? How do EAPs benefit both employers and employees in regards to worker safety and health?

Q: What are cumulative trauma disorders? Why is lowering the incidence of CTDs beneficial to employers? How can employers minimize CTD problems?

Q: What roles do OSHA and the ADA play on AIDS/HIV in the workplace?

Q: ________ is a stress syndrome characterized by emotional exhaustion, depersonalization, and reduced personal accomplishment.

Q: ________ is a form of biological testing that identifies employees who are genetically susceptible to specific occupational substances.

Q: An occupational injury that occurs from repetitive physical movements, such as assembly-line work or data entry, is called ________.

Q: Hiring an employee with a history of violent or illegal behavior without conducting background checks or taking proper precautions is referred to as ________.

Q: GINA allows employers to test the genetics of employees for the purpose of lowering health insurance premiums.

Q: OSHA's hazard communication standard gives employees the right to know about hazardous chemicals in the workplace.