International Human Resource Management
Chapter Exam Questions
Course Introduction
International Human Resource Management explores the strategies, processes, and practices required to manage a diverse and global workforce effectively. The course examines topics such as cross-cultural management, global talent acquisition, international performance appraisal, expatriation and repatriation, global compensation, and labor relations in different legal and cultural contexts. Students will analyze how multinational organizations adapt their HR policies to align with various cultural, economic, and regulatory environments, and consider the ethical challenges posed by operating across borders. Through case studies and practical examples, participants will develop the skills needed to contribute to global human resource strategies and successfully navigate the complexities of managing people in an international context.
Recommended Textbook
International Management Culture Strategy and Behavior 8th Edition by Fred Luthans
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Page 2
Chapter 1: Globalization and International Linkages
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Q1) MITI is a _____ government agency that identifies and ranks national commercial pursuits and guides the distribution of national resources to meet these goals.
A)Chinese
B)Japanese
C)South Korean
D)Philippine
Answer: B
Q2) The subcontracting or contracting out of activities to endogenous organizations that had previously been performed by the firm is called:
A)Homesourcing
B)Insourcing
C)Offshoring
D)Outsourcing
Answer: D
Q3) NAFTA is better integrated as a single market than the EU or the allied Asian countries.
A)True
B)False
Answer: False
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Page 3
Chapter 2: The Political, Legal, and Technological Environment
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Q1) Critics of the Foreign Corrupt Practices Act feared the loss of sales to foreign competitors, especially in those countries where:
A)Customs are adhered to
B)Political stability exists
C)Common law is applicable
D)Bribery is an accepted means
Answer: D
Q2) Communism as an economic system has failed due to the tendency of common goals to stunt:
A)Progression and individual creativity
B)Individual productivity
C)Individual freedom
D)Profit and growth
Answer: A
Q3) Identify the option that would constitute white-collar service industries.
A)Steel and autos
B)Agriculture
C)Insurance only
D)Insurance and banks
Answer: D
Page 4
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Chapter 3: Ethics and Social Responsibility
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Q1) Corporate governance may be defined as the system by which business corporations are directed and controlled.
A)True
B)False
Answer: True
Q2) Development that meets humanity's needs without harming future generations is termed as:
A)Corporate responsibility
B)Sustainability
C)Social responsibility
D)Governance
Answer: B
Q3) The issue of relatively low wages paid by subcontractors to workers in ______ made headlines in 2010 after a series of suicides by factory workers.
A)Vietnam
B)Malaysia
C)Mexico
D)China
Answer: D
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Page 5
Chapter 4: The Meanings and Dimensions of Culture
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Q1) A(n) _____ culture is one in which people are accorded status based on how well they perform their functions.
A)Achievement
B)Ascription
C)Diffuse
D)Specific
Q2) An achievement culture is a culture in which status is attributed based on who or what a person is.
A)True
B)False
Q3) Cultures with low _____ have people who are more willing to accept that risks are associated with the unknown and that life must go on in spite of this.
A)Individualism versus collectivism
B)Power distance
C)Uncertainty avoidance
D)Masculinity versus femininity
Q4) According to the text, in Japan, the top cultural priority is independence.
A)True
B)False
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Chapter 5: Managing Across Cultures
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Q1) What guidelines have to be followed by MNCs in order to tap the potential business opportunities in Russia?
Q2) In practice, guanxi resembles:
A)Nepotism
B)Individualism
C)Commercialism
D)Parochialism
Q3) In Japan, unions are regarded as adversaries of management; in the United States, unions and managers are seen as partners.
A)True
B)False
Q4) Firms with a polycentric predisposition make strategic decisions tailored to suit the cultures of the countries where the MNC operates.
A)True
B)False
Q5) Russians view contracts as binding only if they continue to be mutually beneficial.
A)True
B)False
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Chapter 6: Organizational Cultures and Diversity
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Q1) Which of the following is not an advantage of virtual teams?
A)They can reduce problems associated with personality conflicts
B)They can keep a project moving around the clock
C)They provide a competitive advantage
D)They force managers to rely on subjective data when assessing team members' work
Q2) Organizational climate is reflected by:
A)The degree of cooperation between management and employees
B)Common language, terminology and rituals
C)High product and service quality
D)The way participants interact with each other
Q3) Hofstede's research found that the national cultural values of employees have an insignificant impact on their organizational performance and these values are easily changed by the organization.
A)True
B)False
Q4) In the entry stage of group development, the focus is typically on decision making and implementation.
A)True
B)False
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Chapter 7: Cross-Cultural Communication and Negotiation
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Q1) The personal and impersonal systems of feedback help affiliates keep their home office aware of progress and, in turn, help the home office monitor and control affiliate performance as well as set goals and standards.
A)True
B)False
Q2) The three degrees of communication quantity are:
A)Elaborate, exacting and succinct
B)Precise, imprecise and elaborate
C)Succinct, affective and precise
D)Coarse, precise and elaborate
Q3) Integrative negotiation:
A)Occurs when two parties with opposing goals compete over a set value
B)Involves cooperation between the two groups to integrate interests, create value and invest in the agreement
C)Focuses on the individual relationships and is based on a short-term interaction
D)Is sometimes called a win-lose situation
Q4) What is communication? What is the key to effective communication?
Q5) How does culture impact communication?
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Chapter 8: Strategy Formulation and Implementation
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Q1) TQM covers the full gamut, from strategy formulation to implementation.
A)True
B)False
Q2) This strategy is appropriate when the need for national responsiveness is low and the need for globalization integration is high.
A)International
B)Multi-domestic
C)Global
D)Transnational
Q3) Firms that internationalize after being domestically established have to overcome all of the following barriers except:
A)Their domestic orientation
B)Their internal domestic political ties
C)Their domestic decision-making inertia
D)Their anti-risk seeking behavior
Q4) External resource analysis helps the firm to evaluate its current financial strengths and weaknesses.
A)True
B)False
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Chapter 9: Entry Strategies and Organizational Structures
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Q1) The assignment of work to groups of departments where individuals are collectively responsible for performance is referred to as:
A)Horizontal specialization
B)Vertical specialization
C)Lateral specialization
D)Parallel specialization
Q2) Pressure by local foreign government for continued growth of international sales encourage on-site:
A)Maintenance
B)Supply and distribution operations
C)Manufacturing operations
D)Safety operations
Q3) A _____ is a business arrangement under which one party allows another to operate an enterprise using its trademark, logo, product line and methods of operation in return for a fee.
A)License
B)Franchise
C)Certificate of proprietary usage
D)Joint venture
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Page 11
Chapter 10: Managing Political Risk, Government Relations, and Alliances
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Q1) Which of the following is not a critical legal issue for successful termination of international alliances?
A)Conditions of termination
B)Disposition of assets and liabilities
C)Distributorship arrangements
D)People-related issues
Q2) _____ reviews major political decisions that are likely to affect all business conducted in a particular country.
A)Macro political risk analysis
B)Micro political risk analysis
C)Standard political risk analysis
D)Multidimensional political risk analysis
Q3) Benefits of proactive political strategies include all of the following except:
A)Enhancing government relations in unstable and transitional policy environments
B)Mitigating risk before it becomes unmanageable
C)Providing support for national and sub-central governments in transitional economies
D)Counteracting competitors' efforts to influence government policy
Q4) Explain the role of host governments in alliances.
Page 12
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Chapter 11: Management Decision and Control
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Q1) According to the work of Horovitz, all of the following are common characteristics of British control except:
A)Operating units had a large amount of marketing autonomy
B)Control was used more for general guidance than for surveillance
C)Financial reports were simple and lightly emphasized
D)Top management tended to focus attention on major problem areas and did not get involved in specific, detailed matters of control
Q2) When local managers are inexperienced or not highly effective, decision making tends to be decentralized.
A)True
B)False
Q3) The philosophy, "Anything worth doing in the area of quality is worth overdoing." is the management attitude of the
A)French
B)Danish
C)Japanese
D)Americans
Q4) Discuss the relevance of the various performance measures that are used for control purposes.
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Chapter 12: Motivation Across Cultures
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Q1) In the two-factor motivation theory, job context variables such as salary, interpersonal relations, technical supervision, work conditions and company policies and administration are referred to as hygiene factors.
A)True
B)False
Q2) Hygiene factors include all of the following except:
A)Interpersonal relations
B)Technical supervision
C)Advancement
D)Working conditions
Q3) Recent research reports that EU workers see a strong relationship between how well they do their jobs and the ability to get what they want out of life.
A)True
B)False
Q4) Achievement motivation theory holds that individuals can have a need to get ahead, to attain success and to reach objectives.
A)True
B)False
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Page 14
Chapter 13: Leadership Across Cultures
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Q1) Which of the following are accurate depictions of the leadership style adopted by the managers of many Middle Eastern companies?
A)Highly authoritarian tone; rigid instructions
B)Less bureaucratic; more delegation of authority
C)Informal control mechanisms; routine checks on performance
D)Formal planning; decisions made at all levels of management
Q2) The focus of attention of this leadership style usually is on work progress, work procedures and roadblocks that are preventing goal attainment.
A)Participative
B)Authoritarian
C)Paternalistic
D)Laissez-faire
Q3) Japan is well known for its paternalistic approach to leadership.
A)True
B)False
Q4) Theory Z leadership combines Japanese and U.S.assumptions and approaches to leadership.
A)True
B)False
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Chapter 14: Human Resource Selection and Development
Across Cultures
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Q1) An approach to developing an expatriate compensation package that is based on ensuring the expat is "made whole" and does not lose money by taking the assignment is referred to as the balance-sheet approach.
A)True
B)False
Q2) Home-country nationals are frequently called _____, which refers to those who live and work away from their home country.
A)Inpatriates
B)Third-country nationals
C)Expatriates
D)Multipatriates
Q3) This is the primary language of international business and most expatriates from all countries can converse in it.
A)French
B)German
C)Spanish
D)English
Q4) Discuss the various approaches that can be used to formulate a compensation package.
Page 16
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