International Human Resource Management
Pre-Test Questions
Course Introduction
International Human Resource Management explores the strategies, practices, and challenges involved in managing a diverse workforce in a global context. The course covers topics such as cross-cultural management, international staffing, global talent acquisition and mobility, expatriate management, compensation and benefits across borders, and the impact of international labor laws and ethical considerations. Students will also examine how multinational corporations align human resource policies with global business strategies and adapt to varying cultural, legal, and economic environments worldwide. Through case studies and contemporary examples, participants will gain insights into effective HRM practices that drive organizational success in the international arena.
Recommended Textbook
International Business 7th Edition by Ricky W. Griffin
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Page 2
Chapter 1: An Overview of International Business
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Q1) Which of the following countries has the LEAST dependence on exporting for its overall GDP?
A) Germany
B) Mexico
C) Japan
D) China
Answer: C
Q2) Firms that enter new markets can benefit from economies of scale and diversified revenue streams.
A)True
B)False
Answer: True
Q3) What is a core competency? How do firms benefit from their core competencies?
Answer: A core competency is a distinctive strength or advantage that is central to a firm's operations. Firms use their core competencies in new markets and increase their revenues and profits.
Q4) International business is more complex than domestic business.
A)True
B)False
Answer: True
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Chapter 2: Global Marketplaces and Business Centers
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Q1) Brampton Industries has a facility in a country that has been designated by the World Bank as middle-income. Which of the following is the most likely location of Brampton's plant?
A) Costa Rica
B) Turkey
C) Latvia
D) Rwanda
Answer: A
Q2) The Newly Independent States refers to the ________.
A) Central European countries
B) former Soviet republics
C) largest African nations
D) Four Tigers
Answer: B
Q3) Japan's economic success has been facilitated by its keiretsu.
A)True
B)False
Answer: True
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Chapter 3: Legal, Technological, Accounting, and Political Environments
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Q1) ________ is the risk associated with the potential for the employees or operations of the firm to be threatened by changes in laws, environmental standards, tax codes, and terrorism.
A) Transfer risk
B) Ownership risk
C) Operating risk
D) Exchange rate risk
Answer: C
Q2) Civil wars, terrorist threats, and kidnappings typically disrupt an MNE's production capabilities.
A)True
B)False
Answer: True
Q3) ________ is the foundation of the legal systems in the United Kingdom and its former colonies.
A) Common law
B) Civil law
C) Religious law
D) Bureaucratic law
Answer: A
Page 5
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Chapter 4: The Role of Culture
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Q1) Which country listed below is not considered socially mobile?
A) U.S.
B) India
C) Canada
D) Singapore
Q2) Identify five forms of nonverbal communication. Why are nonverbal forms of communication important in international business?
Q3) Cultural attitudes toward social mobility are LEAST likely to affect an international business in the area of ________.
A) labor relations
B) human capital formation
C) risk taking
D) foreign exchange
Q4) Countries with multiple languages tend to be homogeneous.
A)True
B)False
Q5) Discuss the cultural cluster approach to making sense of national cultures.
Q6) How can an MNE use language as a competitive weapon? What role does language play in cultural cluster approach of international business?
Page 6
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Chapter 5: Ethics and Social Responsibility in International Business
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Q1) According to the model developed by Rob van Tulder and Alex van der Zwart, which of the following best exhibits the cultural values of a nation's citizens?
A) the state
B) the market
C) civil society
D) competitors
Q2) Mick has been padding his expense account on business trips. However, it seems fair to him because the company refuses to provide him with comp time despite long hours he works on these business trips. Which ethical generalization does this most likely illustrate?
A) Individuals have their own personal belief system.
B) Individuals are typically consistent with their beliefs.
C) Individuals can rationalize behavior in various circumstances.
D) Individuals from the same cultural contexts have similar beliefs.
Q3) To date, the ILO has focused most of its efforts on improving labor conditions in China.
A)True
B)False
Q4) Why is it important for top management to demonstrate ethical behavior?
Page 7
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Chapter 6: International Trade and Investment
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Q1) Adam Smith attacked the intellectual basis of mercantilism in 1776.
A)True
B)False
Q2) ________ represents passive holdings of securities such as foreign stocks, bonds, or other financial assets.
A) Foreign direct investment
B) Foreign portfolio investment
C) Capital investment
D) Controlling ownership
Q3) In the U.S., sugar growers, steel companies, and the AFL-CIO are supporters of mercantilist policies. These groups are best characterized as ________.
A) protectionists
B) communists
C) isolationists
D) federalists
Q4) How can an understanding of international trade theories and foreign investment theories benefit MNEs?
Q5) Why are the islands of Caribbean so important to the United States both as a source and a destination of investment?
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Chapter 7: The International Monetary System and the Balance of Payments
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Q1) Platinum was used as a medium of international exchange in ancient times because of its strength and value.
A)True
B)False
Q2) How was the Bretton Woods system beneficial for international firms? Does the IMF benefit international firms? Why or why not?
Q3) Country X paid a quota to the IMF worth the equivalent of $50 million. Now, Country X needs to borrow money from the IMF. What is the maximum amount that Country X may borrow?
A) $7.5 million
B) $12.5 million
C) $25 million
D) $100 million
Q4) Why was the International Development Association created? What is the purpose of the IDA? Do you think its loan guidelines are fair? Why or why not?
Q5) What is the official settlements balance?
Q6) Describe the major outcomes of the Bretton Woods conference.
Page 9
Q7) How can capital inflows occur as credits in the BOP accounting system?
Q8) What was the Baker Plan?
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Page 10
Chapter 8: Foreign Exchange and International Financial Markets
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Q1) A bond that is issued by Nestle, a Swiss company, that is denominated in yen and sold to residents of Japan is most likely a ________.
A) Eurobond
B) global bond
C) foreign bond
D) country fund
Q2) The Eurocurrency market is limited to exchanges that include the euro.
A)True
B)False
Q3) What does the difference between the spot and forward prices of a country's currency most likely suggest?
Q4) Delivery takes place at two different points in time with a swap transaction.
A)True
B)False
Q5) What is the difference between a Eurobond, a global bond, and a foreign bond?
Q6) Currencies that are freely tradable are called ________.
A) hard currencies
B) soft currencies
C) foreign currencies
D) inconvertible currencies
Page 11
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Chapter 9: Formulation of National Trade Policies
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Q1) Which of the following groups would not encourage a government to adopt fair trade policies?
A) domestic labor forces
B) communities where factories are located
C) domestic firms fighting foreign competitors
D) foreign competitors trying to establish a presence in the market
Q2) Explain the effects of the tariff rate quota on the sugar industry in the United States.
Q3) What are the two different forms of dumping? What factors should be considered when determining whether or not dumping has occurred?
Q4) Managed trade is another term for free trade.
A)True
B)False
Q5) Most tariffs imposed by developed countries are ad valorem.
A)True
B)False
Q6) What is the national defense argument for protectionism?
Q7) Discuss the two principal issues surrounding the debate on appropriate trade policy. What role does domestic politics frequently play in such debates?
Page 13
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Chapter 10: International Cooperation Among Nations
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Q1) Each form of economic integration benefits a nation as a whole, but can hurt certain sectors or communities within the economy.
A)True
B)False
Q2) The ________ requires that any preferential treatment granted to one country must be extended to all countries.
A) GATT
B) WTO
C) export promotion system
D) most-favored-nation principle
Q3) Which Canadian firm would most likely NOT be protected in Canada in accordance with NAFTA provisions?
A) Atwater Publishing Company
B) Barton Film Productions
C) Compton TV Studios
D) Dawson Energy
Q4) In the last decade, there has been a decrease in the number of trading blocs.
A)True
B)False
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Chapter 11: International Strategic Management
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Sample Questions
Q1) A focus strategy calls for a firm to target specific types of products for certain customer groups or regions.
A)True
B)False
Q2) Why did Toyota initially struggle in the Chinese market?
A) Toyota faced strict safety requirements in China.
B) Toyota was unable to reach agreements with Chinese suppliers.
C) Toyota failed to position its cars to compete with Chinese automakers.
D) Toyota assumed that the Chinese and Japanese markets were very similar.
Q3) International operations strategy deals with the creation of the firm's products or services.
A)True
B)False
Q4) Resource deployment answers the question: "How can different elements of our business benefit each other?"
A)True
B)False
Q5) What is a control framework?
Q6) What is a single-business strategy?
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Q7) What are the three types of corporate strategies an MNC might choose to follow?
Chapter 12: Strategies for Analyzing and Entering Foreign Markets
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Q1) Compu-Mart, a U.S. firm, entered the Chinese market by buying a controlling interest in Three-Star, a Chinese electronics firm. What is the most likely disadvantage Compu-Mart will face as a result of this acquisition?
A) becoming vulnerable to Chinese tariffs
B) creating competition with Three-Star
C) assuming the liabilities of Three-Star
D) complying with Chinese building codes
Q2) Kodak focuses on developing photo editing software, and the firm has agreements with a Chinese manufacturer to assemble most Kodak cameras. Which entry mode for international business is used by Kodak?
A) management contracting
B) international franchising
C) contract manufacturing
D) international licensing
Q3) Which of the following is a method for foreign direct investment?
A) participating in business process outsourcing
B) buying existing assets in a foreign country
C) exporting services and products
D) entering licensing agreements
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Chapter 13: International Strategic Alliances
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Q1) GM, with a 67 percent stake in a joint venture with Raba, has assumed management control over the venture's operations. What management form is this an example of?
A) shared management agreement
B) assigned arrangement
C) delegated arrangement
D) consensual arrangement
Q2) Advanced Audio and EQ Electronics recently established a joint venture for the purpose of cooperating in the design, production, and sale of a line of audio equipment. Executives at the two firms must now decide the best way to manage the joint venture.
Which of the following is the LEAST likely option?
A) hiring an independent management team
B) jointly sharing management responsibilities
C) assigning one firm all management responsibilities
D) continuing completely separate management activities
Q3) What is a strategic alliance? What is the relationship between a joint venture and a strategic alliance?
Q4) What types of financial conflicts are likely to occur in a strategic alliance? How can many of these disagreements be avoided?
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Chapter 14: International Organization Design and Control
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Questions
Q1) What are the steps a firm needs to take when establishing an international control system? How can a firm overcome resistance to control systems?
Q2) Which of the following is not an advantage of the functional design?
A) Expertise can be transferred easily between functional areas.
B) Managers can maintain centralized control over functional operations.
C) Attention is focused on key areas of the firm.
D) Coordination between divisions is simplified.
Q3) The ________ is typical for a firm with only a small level of international activity.
A) corollary approach
B) export department
C) international division
D) global product design
Q4) The corollary approach is the final evolution a firm takes to become a global organization.
A)True
B)False
Q5) How is strategic control handled in strategic alliances?
Q6) What is the focus of strategic control?
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Chapter 15: Leadership and Employee Behavior in International Business
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Q1) Which models of motivation focus more on the conscious thought processes people use to select one behavior from among several?
A) need-based models
B) process-based models
C) reinforcement models
D) perceptual models
Q2) Satisfied employees tend to be absent less often, make positive contributions, and stay with the organization.
A)True
B)False
Q3) Expatriates who are dissatisfied with their jobs are more likely to leave their employers than employees who are satisfied.
A)True
B)False
Q4) Management relies on formal power and authority rather than on motivation.
A)True
B)False
Q5) What is the basic theory behind the reinforcement model?
Q6) Using examples, compare and contrast leadership and management.
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Chapter 16: International Marketing
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Q1) In countries with little retail concentration, wholesalers make it easier for a firm to market its products.
A)True
B)False
Q2) What role does an international firm's distribution strategy play in its promotion strategy? Provide examples for illustration.
Q3) What are the three factors firms must consider as they develop an advertising strategy?
Q4) Which of the following is an advantage of using personal selling in international marketing?
A) low-cost market entry strategy
B) access to local market information
C) standardization of promotion mix
D) enhancement of firm's reputation
Q5) Standardization allows the firm to develop cost efficiencies in manufacturing, distribution, and promotion while customization allows a firm to tailor the marketing mix to meet customer needs.
A)True
B)False
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Chapter 17: International Operations Management
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Q1) For firms following a cost leadership approach, the operations management function must be able to create goods or services that are clearly different from those of the company's competitors.
A)True
B)False
Q2) What are the essential location decisions faced by international operations managers? What country features and product-related characteristics influence the decision of where to locate an international facility?
Q3) A product's value-to-weight ratio primarily affects ________.
A) inventory maintenance
B) make-or-buy decisions
C) transportation costs
D) customer feedback
Q4) What type of production location makes sense for a firm following a cost leadership strategy?
Q5) What is the relationship between operations management and productivity? What steps can a firm take to enhance its productivity?
Q6) How has Lufthansa increased productivity through employee participation?
Q7) What is statistical process control?
Page 21
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Chapter 18: International Financial Management
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Q1) Which of the following is not a type of letter of credit?
A) advised letter of credit
B) confirmed letter of credit
C) irrevocable letter of credit
D) unconfirmed letter of credit
Q2) Megan, a financial manager at Price Manufacturing, an MNE, strives to minimize the firm's working capital balances. Why would this most likely be important for Price Manufacturing?
A) Subsidiaries need working capital in host-country currencies.
B) Working capital has an increased foreign-exchange risk.
C) Working capital earns a very low rate of return.
D) Working capital is highly taxed overseas.
Q3) The ________ is the number of years it will take the firm to recover the original cash investment from the project's earnings.
A) internal rate of return
B) net present value
C) payback period
D) return on equity
Q4) What are the two roles of the bill of lading?
Q5) Which type of country relies most on countertrade?
Page 22
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Chapter 19: International Human Resource Management and Labor Relations
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Q1) What is culture shock?
Q2) According to research, what is the primary barrier to a firm's successful entry into a foreign market?
A) lack of information
B) lack of foreign partners
C) lack of international talent
D) lack of knowledge about foreign customers
Q3) ________ is a psychological phenomenon that may lead to feelings of fear, helplessness, irritability, and disorientation.
A) Expatriate failure
B) Repatriation
C) Culture shock
D) Depression
Q4) At which stage in the evolution of a firm's organizational structure are international staffing needs lowest?
A) export department
B) international division
C) global organization
D) matrix organization
Page 23
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