International HRM and Globalisation 1Which one of the following statements is incorrect? a In the et

International HRM and Globalisation

1Which oneof the following statements is incorrect?

a In the ethnocentric approach to IHRM all key positions of the host country

subsidiary are filled by nationals of the parent company

b In the geocentric approach to IHRM people always use top managers from the

parent country in the subsidiary

c In the polycentric approach, host country nationals are recruited to manage the subsidiaries in their own country

d In the regiocentric approach the MNE divides its operations into geographic regions and moves staff within particular regions, eg Europe, America, Asia, rather than between regions

2Which oneof the following statements is incorrect?

a The international division structure is used in the early stage of internationalisation

b The international product structure is often adopted by MNEs with related product lines

c The international functional structure gives each functional department of the MNE responsibility for the international operations of that function

d The international geographic/regional structure involves separating out the different geographical/regional area in which the MNE operates

3IHRM is an area of academic study which focuses on:

a comparative research

b the movement of individuals across national boundaries

c the exchange of ideas and practices

d the policies and practices of MNCs

4When the firms adopt a strategy of limiting recruitment to the nationalities of the host country where the branch is located, it is called:

a polycentric approach

b geocentric approach

c ethnocentric approach

d none of the above

5Which oneof the following is among the reasons for the pace of globalisation continuing to increase?

a The number and value of cross-border acquisitions and joint ventures continues to increase from year to year

b Trade is increasing because nations are closing their borders to the cross-border movement of people and money

c It is becoming harder for firms and people to work outside their countries of origin

d Global competition is becoming harder so firms seek more foreign sales

6Which of the following provides the best definition of globalisation?

a The ever-increasing interaction, interconnectedness, and integration of people, companies, and countries

b The slow but steady integration of national economies

c The slow but steady integration of national cultures

d The general increase in international trade

7Which is one of the challenges facing HRM in MNEs?

a Developinga local mind-set inside the HR function, so as to attract, engage, and retain the many employees in the many different countries it serves

b Engagingthe globally mobile employees, such as expatriates, inpatriates, and short-term international assignees

c Aligningcore HR processes and activities primarily with local issues and requirements

d Enhancinglocal country competencies and capabilities within the HR function

8Since international business tends to have little to do with HRM, which of the following is a true statement about HRM and its relation to international business strategy?

a HRM needs to first make sure it handles its domestic responsibilities well

b HRM has relatively little need to worry about its international responsibilities

c HRM only needs to be concerned about international business strategy after the business has decided what it wants to do internationally

d This is an untrue statement Effective IHRM is closely linked to the success of international business

9Broadly defined, the field of IHRM is:

a the study and application of those human resource management activities that impact the process of managing human resources in enterprises in the global environment

b the study of strategic international human resource management

c the practice of human resource management in international firms with foreign subsidiaries

d the study of human resource management activities in international subsidiaries

10Research has found that large Japanese and European firms are more likely

a pursue localised HR practices in their global operations

b pursue transnational management and HR practices

c pursue standardised HR practices in their global operations

d n limit their focus on HR practices in their global operations

The International Organisation: Strategies and


1How can HRM help to build successful cross-border alliances?

a By ensuring that organisations spend 25% of their budgets on cross-border alliances

b By ensuring that a strategy is in place before embarking on a cross-border alliance

c By ensuring that organisations export their ideas to other societies and cultures

d By ensuring that international joint ventures are staffed by high-quality managers

2Subway restaurants train employees at four different locations around the world During training the employees are taught the values and vision of the organisation as well as how to make Subway sandwiches This ensures that world travellers will feel ‘at home’ when they enter a Subway restaurant Subway has adopted:

a a localised approach to SIHRM

b an international approach to SIHRM

c a global approach to SIHRM

d an adaptation approach to SIHRM

3MNE stands for:

a Multiple Numbered Entries

b My Numbered Entry

c Multinational enterprise

d Many National Enterprises

4Which of the following was described as one of the ways that HR supports an MNE

global strategy?

a Transactional IHR services maintained primarily at headquarters

b Ensure IHR contribution as an integral partner in formulating the global strategy for the firm

c Develop the necessary competency among lower-level IHR staff so that they can contribute as partners in the strategic management of the global firm

d Ensure close control of IHR responsibilities within the HR function

5When firms have built, negotiated, or acquired a global presence in multiple countries, they must take advantage of which of these opportunities?

a Apply headquarters practices in all of the countries in which they operate

b Develop global economies of scale

c Duplicate their activities and resources in all those countries

d Protect the enterprise’s intellectual property in headquarters

6The global firm is one in which

a national borders have become even more important

b products and services are increasingly adapted to local preferences

c the best and innovative ideas are sought everywhere and applied to markets around the world

d locale for producing products and services are spread around the world to be close to customers

7In the global firm,

a there tends to be the use of more expatriates in local subsidiaries

b more transfers of employees between subsidiaries

c there is more use of training for managers and executives that is customised to local cultures

d there is less use of third country nationals

8In the creation of a foreign subsidiary, which of the following is nota choice for developing HR practices?

a Transferring practices from headquarters

b Using local practices

c Creating new practices which are a combination of headquarters and local practices

d Using the practices of a competing firm

9A greenfield project is the:

a development of an environmentally-friendly business in a foreign country

b acquisition of a sustainable business in a foreign country

c development of a wholly-owned foreign subsidiary from the ground up

d creation of a new international joint venture

10A brownfield project is

a the development of a new foreign subsidiary built from the ground up in a “brown” field

b the taking over of an existing but struggling foreign joint venture

c the development of a new foreign subsidiary in an existing facility

d the creation of a new foreign partnership