Chapter 3--The Global EnvironmentStudent: ___________________________________________________________________________ 1. Which industrialized nation emerged as the only intact major power after World War II? A. The United States B. Japan C. Germany D. Canada E. Africa 2. All EXCEPT which of the following countries are considered the leading industrial powers in today's global economy? A. The United States B. Japan C. Germany D. India E. All of these are considered leading industrial powers. 3. Which of the following trends is NOT true of developed nations today (such as the United States, Japan, the United Kingdom, and so on)? A. Population growth is slowing. B. International trade is expanding. C. The labor force is growing quickly. D. Competition from foreign countries is increasing. E. Countries are becoming increasingly interdependent. 4. Which country is NOT experiencing rapid population growth? A. China B. Canada C. India D. Indonesia E. Mexico 5. Under a geocentric staffing model, A. host-country nationals are used heavily because they know the local markets. B. the organization will have a skeleton human resource department at the host-country location, while the home-country human resource department retains all control. C. the organization seeks to hire the best person available for a position regardless of where the individual comes from. D. expatriate home-country nationals are hired to fill higher-level foreign positions. E. the home-office perspective takes precedence over local issues. 6. Which international staffing model involves staffing high-level foreign jobs with parent-country nationals? A. Globalcentric B. Polycentric C. Geocentric D. Egocentric E. None of these 7. No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit financially from other people's misfortunes. This cultural factor pertains to what type of difference? A. Language B. Business practices C. Children's rights D. Roles E. Personal norms 8. Dietrich prefers structured circumstances instead of situations that are relatively ambiguous. Which cultural dimension does he exhibit? A. Individualism B. Collectivism C. Masculinity D. Time orientation E. Uncertainty Avoidance 9. What aspect of international business do NAFTA and the EU represent? A. Tariff systems B. Economic communities C. Trade controls D. Export regulations E. Quota guidelines Less risk is involved. Joint ventures and strategic alliances E. Siemens has a complex matrix organization structure. uncertainty avoidance C. Direct investment D. Synergy between business partners is achieved. He would score highly on the ____ dimension of Hofstede's model of culture. Managers who have been with the company for years and built relationships are the most effective. Exporting and direct investment 14. Direct investment and strategic alliances C. Exporting B. E. individualism C. Exporting and licensing D. power distance E. Licensing and joint ventures B. Joint venture E. power distance B. uncertainty avoidance E. John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others. time orientation 11. collectivism 12. Licensing C.10. There is more profit potential. B. Under which two approaches to international business will the human resource function be LEAST affected? A. Strategic alliance 13. C. It is not expensive. A. masculinity D. . Someone with a cultural dimension of ______ is more likely to experience success there. What is an advantage of direct investment in another country? A. What is the term used when a company lets a foreign firm make and/or distribute its products in a local market? A. time orientation D. A. The facility is less integrated in the foreign market. D. femininity B. 18. Celebrity will need to tailor training to best develop workers from various countries. Prakash is a human resource manager for an Indian company that is building a manufacturing plant in Singapore. production design. training needs. B. D. Direct investment D. Celebrity will need to provide the same training to all of its foreign workers. E. Exporting B. compensation. Celebrity will only need to train workers who have contact with customers. 17. Under which international strategy will several companies agree to cooperate for mutual benefit? A. training. Celebrity will not need to train its workers. human resource technology. C. E. The plant will be staffed with Indian managers and local workers. Locating a facility in a relatively underdeveloped area will impact all of the following human resource activities EXCEPT A. Which advice would NOT be appropriate for Prakash? A. The cost of living is different in Singapore than it is in India. selection. E. so compensation policy must account for that difference. development issues. but it hires workers from various countries to communicate with and serve guests from around the world. B. Compensation for workers in Singapore will likely be the same as for workers in India. Celebrity will need to provide the same training to all of its workers. Multinational organization E. other workers need no training. recruitment activities. 19. B. B.15. E. You must understand legal requirements for compensation in Singapore. Local issues that must be dealt with by firms conducting business in foreign markets include all of the following EXCEPT A. C. . recruiting. C. C. Which of the following is an accurate statement? A. Importing C. You must consider the Indian government's legal requirements for compensation. D. Strategic alliance 16. D. Celebrity Cruises is based in Florida. Workers in Singapore will have different preferences for compensation and benefits than will Indian workers. D. selection requirements. D. Job location assistance for the spouse C. expatriate returns early because of an inability to perform. D. E. Wangkyo is an electrical engineer who designs power systems for factories. C. company sends a manager to a second foreign assignment. E. Which skills will be MOST important to Wangkyo in his foreign assignment? A. His employer is sending him on a foreign assignment for one month. When a company hires host-country nationals to staff foreign locations in underdeveloped countries. A hardship premium E. expatriate's coworkers report that he or she is not fitting in well. following his success as CEO of Burger King International. Repatriation occurs when a(n) A. business that is managed by the expatriate loses money. Language skills C. rather than send an American manager overseas. cost of sending the manager to the foreign assignment is greater than the benefit gained. hire a consultant. Financial skills E. C.20. provide extensive training and development. cut the benefits package provided to employees. offer exercise classes. . B. manager on a foreign assignment is compensated in the local currency. A cost-of-living allowance D. Disney chose an experienced international manager who lived in France. seek permission from competitors. in part to eliminate the risk of expatriate failure. to design a system for a new factory that is being built overseas. C. expatriate manager comes home from a foreign assignment. Housing benefits B. B. Leadership skills 23. B. D. manager likes a foreign assignment so much that he or she remains in the foreign country. Disney chose Andre Lacroix to be CEO of Euro Disney. 24. E. Technical skills B. it must often A. expatriate needs extensive training before he or she is able to accept the assignment. Expatriate failure occurs when the A. Cultural skills D. Unlimited travel to and from the home country 22. Which of the following is NOT likely to be a part of a compensation package designed for an expatriate? A. 21. manager is sent on a foreign assignment. France B. labor “contracts ” are not really legal contracts at all but are merely understandings that can be broken at any time by either party with no penalty. a quarter D. More than ______ the world ’s workforce outside the United States belongs to labor unions. Foreign labor unions are more likely to be involved in political and social issues. maintenance D. two thirds E. three fourths 27. management E. E. Which of the following is an accurate statement about labor unions outside the United States? A. clerical B. Labor relations in ______ tend to be cordial.S. half B.25. A. the United States 28. A. HCNs are LEAST likely to work in ______ positions. 26. France B. few workers belong to labor unions. Outside the United States. A. In ______ . line worker C. a third C. labor contracts are formal legal contracts and employers can be sued in court by the unions for breaking them. Germany D. D. A. Japan D. Germany 29. Japan E. the United States E. England C. office worker . Labor unions outside the United States are regulated by U. Foreign employers rarely negotiate with unions in their home country. England C. B. C. laws. In foreign countries. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. Which staffing model is Mini-PC using for its Swedish unit? A. managers to oversee Swedish operations. Multicentric . Ethnocentric C. Refer to Scenario 3.1. Scenario 3. Geocentric B. in comparison to Mini-PC's nonunionized workforce. Japan B. the United States 31. In response to high European demand.30. Sweden. Polycentric D. India C. Sweden has a socialist approach to health benefits. Egocentric E. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. which means higher personal taxes for workers but lower health benefits costs for employers. the Swedish workforce is about 80% unionized. Also. a sound economy. Sweden has an extremely stable political system. the United States and Sweden are about the same in power distance and long-term orientation. Some countries. a handheld manufacturer in Stockholm. Mini-PC purchased Marstrand Electronics. However. such as ______. When comparing average national scores on Hofstede's dimensions of culture. Sweden D. Swedes do take a different view of work time. value women's rights. France E. in that they expect at least two months of vacation per year. focus compensation on assessing an individual’s performance and then compensating that individual accordingly. a highly educated workforce. and are predominantly Christian in religious beliefs.1 Mini-PC is a Houston-based maker of handheld computers. and it is a member of the European Union. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English.S. A. Also. and it is a member of the European Union. Mini-PC purchased Marstrand Electronics. who value team or group contributions. and Swedish business units? A. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English. the Swedish workforce is about 80% unionized.1 Mini-PC is a Houston-based maker of handheld computers. a sound economy. from the CEO to the lowest worker. In response to high European demand. as opposed to American workers. ambitious. which means higher personal taxes for workers but lower health benefits costs for employers. In response to high European demand. Sweden has an extremely stable political system. Swedes do take a different view of work time. Scenario 3. Refer to Scenario 3. Religious differences C. in comparison to Mini-PC's nonunionized workforce. the Swedish workforce is about 80% unionized. a highly educated workforce. in that they expect at least two months of vacation per year. and it is a member of the European Union. Language B. On the basis of scores on Hofstede's dimensions of culture. in comparison to Mini-PC's nonunionized workforce. Which aspect of culture will MOST likely affect Mini-PC's human resource activities at the corporate level because of differences between its U. as opposed to Mini-PC workers in the United States. Swedes will prefer to emphasize individual contributions. Gender roles D. Swedes will not be comfortable when given tasks that are too structured. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. B. which organization cultural values will create the most discomfort and resistance among Swedish workers? A. value women's rights. E. Swedes will be much less competitive. a handheld manufacturer in Stockholm. in that they expect at least two months of vacation per year. by his or her first name. When comparing average national scores on Hofstede's dimensions of culture. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. who prefer lots of structure.S. managers to oversee Swedish operations. and are predominantly Christian in religious beliefs. D. managers to oversee Swedish operations. and driven than Mini-PC's American workers. Sweden. a handheld manufacturer in Stockholm.1 Mini-PC is a Houston-based maker of handheld computers. Differences in views of child labor 33. Mini-PC purchased Marstrand Electronics. Sweden has a socialist approach to health benefits. Swedes will resist Mini-PC's policy of calling everyone. However. Scenario 3. However.1.S. Sweden has an extremely stable political system. Personal norms E.1. a highly educated workforce. and are predominantly Christian in religious beliefs.32. . a sound economy. Sweden. Refer to Scenario 3. Also. Swedes do take a different view of work time. C. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. which means higher personal taxes for workers but lower health benefits costs for employers. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English. When comparing average national scores on Hofstede's dimensions of culture. value women's rights.S. the United States and Sweden are about the same in power distance and long-term orientation. Swedes will place a much greater value on patience and persistence than do Mini-PC's American workers. the United States and Sweden are about the same in power distance and long-term orientation. Sweden has a socialist approach to health benefits. Scenario 3. Local training issues D. Licensing C. Also. Strategic alliance 35. which means higher personal taxes for workers but lower health benefits costs for employers. Sweden has an extremely stable political system. managers to oversee Swedish operations. In response to high European demand.S. and it is a member of the European Union. Local recruiting issues E. Swedes do take a different view of work time. Local selection issues C. the Swedish workforce is about 80% unionized. a highly educated workforce.34. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. In response to high European demand. Exporting B. in comparison to Mini-PC's nonunionized workforce. a sound economy. different at Marstrand than at Mini-PC) by conditions described in the scenario? A..1 Mini-PC is a Houston-based maker of handheld computers. which means higher personal taxes for workers but lower health benefits costs for employers. Refer to Scenario 3. Direct investment D. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. Also. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.S. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. Sweden. and are predominantly Christian in religious beliefs. managers to oversee Swedish operations. in that they expect at least two months of vacation per year.1. Sweden has a socialist approach to health benefits. the United States and Sweden are about the same in power distance and long-term orientation. Which of the domestic human resource issues is most likely affected (i. Refer to Scenario 3. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English. Sweden has a socialist approach to health benefits. Sweden has an extremely stable political system. When comparing average national scores on Hofstede's dimensions of culture. Local compensation issues B. The United States and Japan have experienced slowing growth rates in employment in recent years. Joint venture E. When comparing average national scores on Hofstede's dimensions of culture. True False . a sound economy. Mini-PC purchased Marstrand Electronics. value women's rights. Sweden. the Swedish workforce is about 80% unionized.e. Local development issues 36. Which international strategy is Mini-PC using to expand its international operations? A. Scenario 3. a handheld manufacturer in Stockholm. a handheld manufacturer in Stockholm.1. Mini-PC purchased Marstrand Electronics. However. the United States and Sweden are about the same in power distance and long-term orientation.1 Mini-PC is a Houston-based maker of handheld computers. in that they expect at least two months of vacation per year. a highly educated workforce. in comparison to Mini-PC's nonunionized workforce. and are predominantly Christian in religious beliefs. Swedes do take a different view of work time. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English. and it is a member of the European Union. value women's rights. However. angry labor officials took senior managers hostage in efforts to win better employment contracts. Sony. and 3M. The ethnocentric staffing model utilizes host-country nationals extensively throughout the company. True False 41. True False . True False 38.37. True False 40. True False 39. Labor relations are not heavily regulated by law. True False 42. True False 43. True False 45. During contract negotiations at French operations for Caterpillar. training and development needs will be very extensive. Most companies follow the advice of experts and complete the repatriation process successfully. Benefit packages are remarkably similar across most countries. In a relatively underdeveloped country. The interrelatedness of global markets was demonstrated by the recent economic downturn in the United States that affected many other parts of the world. Training is instruction directed at enhancing specific job-related skills and abilities and most often focuses on managers. True False 44. A joint venture might not involve ownership but still involves cooperation between firms. Using the relative differences on these dimensions as the basis of your answer. Country China India Japan Power Distance 80 77 54 Individualism Masculinity 15 48 46 55 56 95 Uncertainty Avoidance 40 40 92 Long-Term Orientation 114 61 80 47. briefly describe in words each country's national culture. When a multinational firm hires local workers. The following chart reports the average national scores of Hofstede's five dimensions of culture for three different countries. and how does each strategy affect its human resource function? 48. How may an organization choose to compete in the international environment. what types of training are needed? .46. How do businesses compensate expatriates? 50.49. How does the area of labor relations affect international human resource management? . Mexico . 4. India D. Japan C. C. India E. Canada E. Countries are becoming increasingly interdependent. China B. the United Kingdom. Japan. Population growth is slowing. Which industrialized nation emerged as the only intact major power after World War II? A. Africa 2. Indonesia E. The labor force is growing quickly. Germany D. 3. Which of the following trends is NOT true of developed nations today (such as the United States. Competition from foreign countries is increasing. All EXCEPT which of the following countries are considered the leading industrial powers in today's global economy? A. B. D. E. The United States B. International trade is expanding. Germany D. and so on)? A. Japan C. Canada C.Chapter 3--The Global Environment Key 1. The United States B. All of these are considered leading industrial powers. Which country is NOT experiencing rapid population growth? A. E. D. Which international staffing model involves staffing high-level foreign jobs with parent-country nationals? A. This cultural factor pertains to what type of difference? A. Masculinity D. Tariff systems B. Which cultural dimension does he exhibit? A. B.5. Roles E. A. Quota guidelines . 6. Export regulations E. None of these 7. Egocentric E. Trade controls D. Economic communities C. the organization will have a skeleton human resource department at the host-country location. Dietrich prefers structured circumstances instead of situations that are relatively ambiguous. Geocentric D. Globalcentric B. No outplacement firms exist in several Middle Eastern countries because the religion of Islam specifies that individuals should not benefit financially from other people's misfortunes. Language B. host-country nationals are used heavily because they know the local markets. What aspect of international business do NAFTA and the EU represent? A. Children's rights D. Time orientation E. Business practices C. expatriate home-country nationals are hired to fill higher-level foreign positions. the organization seeks to hire the best person available for a position regardless of where the individual comes from. Collectivism C. Individualism B. Uncertainty Avoidance 9. while the home-country human resource department retains all control. C. Personal norms 8. Under a geocentric staffing model. Polycentric C. the home-office perspective takes precedence over local issues. Less risk is involved. Licensing C. Exporting and direct investment 14. Someone with a cultural dimension of ______ is more likely to experience success there. What is the term used when a company lets a foreign firm make and/or distribute its products in a local market? A. Strategic alliance 13. time orientation D. collectivism 12. Managers who have been with the company for years and built relationships are the most effective. Joint venture E. It is not expensive. John prefers to work by himself on projects and avoids group work that requires him to monitor the actions of others. A. individualism C. C. Under which two approaches to international business will the human resource function be LEAST affected? A. femininity B.10. A. Exporting and licensing D. What is an advantage of direct investment in another country? A. He would score highly on the ____ dimension of Hofstede's model of culture. Synergy between business partners is achieved. The facility is less integrated in the foreign market. E. masculinity D. . There is more profit potential. uncertainty avoidance C. power distance B. Exporting B. D. Siemens has a complex matrix organization structure. Joint ventures and strategic alliances E. time orientation 11. power distance E. uncertainty avoidance E. Direct investment D. B. Direct investment and strategic alliances C. Licensing and joint ventures B. D. recruiting. E. B. but it hires workers from various countries to communicate with and serve guests from around the world. D. You must consider the Indian government's legal requirements for compensation. You must understand legal requirements for compensation in Singapore. B. C. B. production design. 19. Compensation for workers in Singapore will likely be the same as for workers in India. selection. E. C. selection requirements. Under which international strategy will several companies agree to cooperate for mutual benefit? A. Locating a facility in a relatively underdeveloped area will impact all of the following human resource activities EXCEPT A. . 17. so compensation policy must account for that difference. D. The cost of living is different in Singapore than it is in India. Which of the following is an accurate statement? A. C. Celebrity will not need to train its workers. other workers need no training. The plant will be staffed with Indian managers and local workers. human resource technology. Prakash is a human resource manager for an Indian company that is building a manufacturing plant in Singapore. compensation. D. C. B. recruitment activities. Exporting B. 18. E.15. Local issues that must be dealt with by firms conducting business in foreign markets include all of the following EXCEPT A. training needs. Celebrity will only need to train workers who have contact with customers. Celebrity will need to provide the same training to all of its workers. Celebrity Cruises is based in Florida. Direct investment D. Importing C. Celebrity will need to provide the same training to all of its foreign workers. Strategic alliance 16. Celebrity will need to tailor training to best develop workers from various countries. development issues. Workers in Singapore will have different preferences for compensation and benefits than will Indian workers. E. Multinational organization E. Which advice would NOT be appropriate for Prakash? A. training. 24. Unlimited travel to and from the home country 22. . Job location assistance for the spouse C. B. manager on a foreign assignment is compensated in the local currency. in part to eliminate the risk of expatriate failure. When a company hires host-country nationals to staff foreign locations in underdeveloped countries. Expatriate failure occurs when the A.20. Cultural skills D. to design a system for a new factory that is being built overseas. His employer is sending him on a foreign assignment for one month. C. C. E. Financial skills E. expatriate returns early because of an inability to perform. D. cut the benefits package provided to employees. E. following his success as CEO of Burger King International. business that is managed by the expatriate loses money. company sends a manager to a second foreign assignment. Which skills will be MOST important to Wangkyo in his foreign assignment? A. Language skills C. provide extensive training and development. A cost-of-living allowance D. Technical skills B. offer exercise classes. D. D. manager likes a foreign assignment so much that he or she remains in the foreign country. hire a consultant. it must often A. B. rather than send an American manager overseas. A hardship premium E. Disney chose an experienced international manager who lived in France. C. Housing benefits B. Repatriation occurs when a(n) A. expatriate needs extensive training before he or she is able to accept the assignment. expatriate manager comes home from a foreign assignment. 21. Disney chose Andre Lacroix to be CEO of Euro Disney. seek permission from competitors. B. cost of sending the manager to the foreign assignment is greater than the benefit gained. E. Leadership skills 23. expatriate's coworkers report that he or she is not fitting in well. manager is sent on a foreign assignment. Which of the following is NOT likely to be a part of a compensation package designed for an expatriate? A. Wangkyo is an electrical engineer who designs power systems for factories. Labor unions outside the United States are regulated by U. the United States E. A. E. office worker . Foreign employers rarely negotiate with unions in their home country. D. 26. a third C. More than ______ the world ’s workforce outside the United States belongs to labor unions. HCNs are LEAST likely to work in ______ positions. labor contracts are formal legal contracts and employers can be sued in court by the unions for breaking them. A.25. England C. A. three fourths 27. Labor relations in ______ tend to be cordial. a quarter D. England C. Japan D. clerical B. France B. two thirds E. few workers belong to labor unions. Which of the following is an accurate statement about labor unions outside the United States? A. labor “contracts ” are not really legal contracts at all but are merely understandings that can be broken at any time by either party with no penalty. laws. C. Foreign labor unions are more likely to be involved in political and social issues.S. B. half B. In foreign countries. France B. Germany D. management E. Germany 29. line worker C. maintenance D. the United States 28. Outside the United States. A. Japan E. In ______ . a sound economy. Sweden D. France E. in that they expect at least two months of vacation per year. such as ______. Refer to Scenario 3. Also. Swedes do take a different view of work time. a handheld manufacturer in Stockholm. Multicentric . in comparison to Mini-PC's nonunionized workforce. When comparing average national scores on Hofstede's dimensions of culture. Some countries. Sweden has an extremely stable political system. and it is a member of the European Union. and are predominantly Christian in religious beliefs. the Swedish workforce is about 80% unionized. the United States 31. In response to high European demand. India C. Japan B. managers to oversee Swedish operations. Sweden. However. Sweden has a socialist approach to health benefits. a highly educated workforce. focus compensation on assessing an individual’s performance and then compensating that individual accordingly. Which staffing model is Mini-PC using for its Swedish unit? A. the United States and Sweden are about the same in power distance and long-term orientation.1 Mini-PC is a Houston-based maker of handheld computers. Scenario 3. which means higher personal taxes for workers but lower health benefits costs for employers. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English. Mini-PC purchased Marstrand Electronics. A. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.1. Ethnocentric C. Polycentric D.S. Geocentric B. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. Egocentric E.30. value women's rights. who value team or group contributions. in that they expect at least two months of vacation per year. in comparison to Mini-PC's nonunionized workforce. managers to oversee Swedish operations. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. a handheld manufacturer in Stockholm. Scenario 3. Sweden has an extremely stable political system. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. who prefer lots of structure.1 Mini-PC is a Houston-based maker of handheld computers. which organization cultural values will create the most discomfort and resistance among Swedish workers? A. Also. C. in comparison to Mini-PC's nonunionized workforce. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. a highly educated workforce. Language B. ambitious. and it is a member of the European Union.S. Swedes do take a different view of work time. the United States and Sweden are about the same in power distance and long-term orientation. the Swedish workforce is about 80% unionized. managers to oversee Swedish operations. Sweden has an extremely stable political system. a highly educated workforce. In response to high European demand. as opposed to American workers.1 Mini-PC is a Houston-based maker of handheld computers. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English. Swedes will be much less competitive. which means higher personal taxes for workers but lower health benefits costs for employers. Swedes do take a different view of work time. . However. On the basis of scores on Hofstede's dimensions of culture. When comparing average national scores on Hofstede's dimensions of culture. Scenario 3. Sweden has a socialist approach to health benefits. When comparing average national scores on Hofstede's dimensions of culture. as opposed to Mini-PC workers in the United States. Refer to Scenario 3. Sweden. In response to high European demand. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English. Swedes will prefer to emphasize individual contributions. a sound economy. Swedes will place a much greater value on patience and persistence than do Mini-PC's American workers. value women's rights. Religious differences C. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity.S. E. Which aspect of culture will MOST likely affect Mini-PC's human resource activities at the corporate level because of differences between its U. Differences in views of child labor 33. Swedes will not be comfortable when given tasks that are too structured. which means higher personal taxes for workers but lower health benefits costs for employers. Personal norms E. D. However. Swedes will resist Mini-PC's policy of calling everyone.1. value women's rights.S. and Swedish business units? A. B. and driven than Mini-PC's American workers. a sound economy. Refer to Scenario 3. from the CEO to the lowest worker.32. the Swedish workforce is about 80% unionized. a handheld manufacturer in Stockholm. Sweden has a socialist approach to health benefits. Also. Mini-PC purchased Marstrand Electronics. and are predominantly Christian in religious beliefs.1. Gender roles D. in that they expect at least two months of vacation per year. Mini-PC purchased Marstrand Electronics. and it is a member of the European Union. Sweden. and are predominantly Christian in religious beliefs. the United States and Sweden are about the same in power distance and long-term orientation. by his or her first name. and it is a member of the European Union. a sound economy. which means higher personal taxes for workers but lower health benefits costs for employers. Direct investment D. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English. Refer to Scenario 3.1. Local selection issues C. Also. in that they expect at least two months of vacation per year. In response to high European demand. When comparing average national scores on Hofstede's dimensions of culture. Mini-PC purchased Marstrand Electronics. managers to oversee Swedish operations.e. However. Scenario 3. the United States and Sweden are about the same in power distance and long-term orientation.S.1. Sweden has a socialist approach to health benefits. managers to oversee Swedish operations. Strategic alliance 35. Mini-PC decided to purchase Marstrand because virtually all Swedes speak English. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. Swedes do take a different view of work time. Local recruiting issues E. Joint venture E. Sweden. Swedes do take a different view of work time.1 Mini-PC is a Houston-based maker of handheld computers. which means higher personal taxes for workers but lower health benefits costs for employers. in that they expect at least two months of vacation per year. different at Marstrand than at Mini-PC) by conditions described in the scenario? A. In response to high European demand. Local development issues 36. Refer to Scenario 3. and are predominantly Christian in religious beliefs. TRUE . When comparing average national scores on Hofstede's dimensions of culture. Which international strategy is Mini-PC using to expand its international operations? A. and it is a member of the European Union. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. Sweden has an extremely stable political system. and are predominantly Christian in religious beliefs. the Swedish workforce is about 80% unionized.S. in comparison to Mini-PC's nonunionized workforce. the United States and Sweden are about the same in power distance and long-term orientation. Local training issues D. Sweden has a socialist approach to health benefits. Which of the domestic human resource issues is most likely affected (i. Also. a handheld manufacturer in Stockholm. value women's rights. Mini-PC allowed the management of Marstrand to continue in their jobs rather than sending U. a handheld manufacturer in Stockholm. The United States and Japan have experienced slowing growth rates in employment in recent years. a sound economy. However.1 Mini-PC is a Houston-based maker of handheld computers. Licensing C.. in comparison to Mini-PC's nonunionized workforce.34. a highly educated workforce. Sweden. Scenario 3. value women's rights. the Swedish workforce is about 80% unionized. but the United States is higher than Sweden in individualism and uncertainty avoidance and much higher in masculinity. Local compensation issues B. Exporting B. a highly educated workforce. Sweden has an extremely stable political system. Mini-PC purchased Marstrand Electronics. FALSE 42. TRUE 41. Benefit packages are remarkably similar across most countries.37. FALSE 43. A joint venture might not involve ownership but still involves cooperation between firms. training and development needs will be very extensive. FALSE . Sony. TRUE 45. Labor relations are not heavily regulated by law. and 3M. angry labor officials took senior managers hostage in efforts to win better employment contracts. The ethnocentric staffing model utilizes host-country nationals extensively throughout the company. FALSE 44. TRUE 38. The interrelatedness of global markets was demonstrated by the recent economic downturn in the United States that affected many other parts of the world. Training is instruction directed at enhancing specific job-related skills and abilities and most often focuses on managers. FALSE 40. During contract negotiations at French operations for Caterpillar. In a relatively underdeveloped country. FALSE 39. Most companies follow the advice of experts and complete the repatriation process successfully. and longterm orientation are all near 50. However. has many more values that are moderate. but values of individualism/collectivism. uncertainty avoidance. Using the relative differences on these dimensions as the basis of your answer. Japan also has moderate scores on power distance and individualism/collectivism. masculinity/femininity. A long-term orientation would value characteristics such as patience. and an emphasis on long-term. demonstrating a focus on ambition and assertiveness. in which groups are valued over individuals. India has a high value for status and authority. The following chart reports the average national scores of Hofstede's five dimensions of culture for three different countries. persistence. uncertainty avoidance.46. very high emphasis placed on long-term goals over short-term goals. in contrast to China's. China's most extreme cultural value is the very. China has moderate levels of assertion and competitiveness and a moderate preference for structured situations over unstructured ones. and planning for the future. not short-term. briefly describe in words each country's national culture. saving. China's score on this variable is the highest of any nation in the world. Japan's scores on masculinity. a high preference for structured tasks. showing less respect for authority than was shown in China or India and only a slight trend in favor collectivism over individualism. goals. . which would be a middle of the road score. India's culture. and long-term orientation are all quite high. Country China India Japan Power Distance 80 77 54 Individualism Masculinity 15 48 46 55 56 95 Uncertainty Avoidance 40 40 92 Long-Term Orientation 114 61 80 China's culture shows a high respect for authority and status and a very high emphasis on collectivism. . When a multinational firm hires local workers. Human resource managers face a complex set of issues and challenges. an international business must provide prevailing compensation packages for its managers in a given market. The corporate human resource staff of each strategic partner will need to link and coordinate with its counterparts. professional licensing requirements. standards of living. supply and demand of managerial talent). In a direct investment strategy. a hardship premium (for less desirable assignments). geocentric) being used.47. the labor force may be relatively educated but business practices may vary considerably. If the new venture is being operated within the context of one of the existing partners' organization. education. . and so on. and job location assistance for spouses. and how does each strategy affect its human resource function? A company may choose a strategy of exporting. and government regulations. In some developing countries. Employees of the firm will be working in foreign locations. math skills. The human resource function changes substantively from that of a domestic firm. In other areas. and/or a tax equalization system. Training in these regions is likely to be very comprehensive. Benefits may be adjusted to include housing.e. standard of living. and life-style norms. How may an organization choose to compete in the international environment. Under a licensing strategy. a company grants its permission to another company in a foreign country to manufacture and/or market its products in the local market. often on an equity basis. Organizations may need to provide differential compensation to make up for differences in currency valuation. local workers may lack business knowledge and they may even lack basic skills. The licensing firm typically pays a licensing fee to the original firm. the labor force is highly educated and knowledgeable about business practices. Packages include salary and nonsalary items and are determined by labor market forces (i. The human resource function faces no meaningful differences in responsibilities from a solely domestic business. medical treatment. disparate relationships among the human resource staff members will complicate this coordination further. How do businesses compensate expatriates? To remain competitive. a firm headquartered in one country builds or purchases operating facilities or subsidiaries in a foreign country. polycentric. so more training may be needed to provide both firm-specific skills and more generalized skills in areas such as team decision making or customer service. 49. occupational status. The human resource function faces no meaningful differences in responsibilities. club memberships. what types of training are needed? The types of training that are needed to train local workers depend on the location of the facility. In many developed nations. Joint ventures and strategic alliances involve two or more firms cooperating in the ownership and/or management of an operation. travel to the home country. and the corporate human resource function will need to extend and expand its scope and operations to manage employees across national boundaries. based on the staffing strategy (ethnocentric. such as literacy. This may include a cost-of-living allowance. in which a product is made in the domestic marketplace and then sold in another country. 48. so only a small amount of firm-specific training may be needed. How does the area of labor relations affect international human resource management? Labor relations is the process of dealing with employees who are organized into labor units. union membership is quite large and continues to grow. International human resource managers need to understand such differences and may need to draw heavily on local expertise to help them address labor relations issues in an appropriate. In many countries. labor unions are much more concerned with social issues than they are in the United States. In many countries. and dispute resolution procedures.50. Different situations exist in countries throughout the world. Different norms or expectations about the relationships between unions and management exist in different countries. More than half the world's workforce outside the United States belongs to labor unions. the level of cordiality in negotiations. and legal manner. Many countries have labor parties that seek to achieve the political goals of unions in those countries. effective. . use of labor activities such as temporary work stoppage. so their political activism may extend beyond wages and conditions of employment. Countries may differ in the definition of labor contracts.