Topics: Multinational corporation, Geert Hofstede, Cross-cultural communication Pages: 62 (10530 words) Published: November 30, 2014
Chapter 15
Managing Human Resources Globally

True / False Questions
1. Currently, exports account for 11 percent of the gross domestic product in the United States, and they have been growing at a rate of 12 percent a year since 1987.  True    False
2. All NAFTA, EEC, and GATT member countries share a common currency, the euro.  True    False
3. The General Agreement on Tariffs and Trade is an international framework of rules for reducing trade barriers around the world.  True    False
4. NAFTA, the EEC and GATT all exemplify events that are reducing competition among companies worldwide.  True    False
5. The culture of the country in which the facility is located most influences the company's international HRM practices.  True    False
6. Uncertainty avoidance is concerned with how a culture deals with hierarchical power relationships.  True    False
7. The United States has a high power distance, individualistic culture.  True    False
8. Power distance describes the division of roles between the sexes within a society.  True    False
9. Cultures with weak uncertainty avoidance tend to be rather easygoing and flexible regarding different views.  True    False
10. Cultures with small power distance stress putting relationships before money, helping others, and preserving the environment.  True    False
11. Japan's culture is considered to be quite feminine according to Hofstede's masculinity/femininity dimension.  True    False
12. Hofstede found that culture has a profound impact on a country's economic health by promoting certain values that either aid or inhibit economic growth.  True    False
13. Cultures differ strongly on such things as how subordinates expect leaders to lead, how decisions are handled within the hierarchy, and what motivates individuals.  True    False
14. Collectivist cultures, as well as those with less of an authoritarian orientation, value group decision making and participative management practices more highly than do individualistic cultures.  True    False

15. Human capital refers to the productive capabilities of individuals.  True    False
16. Countries with high human capital are attractive sites for direct foreign investment that creates high-skill jobs.  True    False
17. In the United States, employees have a legal right to codetermination, which means that a firm's employees have direct influence on the important decisions that affect them, such as large investments or new strategies.  True    False

18. A country's economic system is completely unrelated to its level of human capital.  True    False
19. Third-country nationals are employees born in a country other than the parent country or host country, but who work in the host country.  True    False
20. Domestic companies do not face problems with cultural diversity.  True    False
21. Companies become international in scope when they build facilities in a number of different countries, attempting to capitalize on lower production and distribution costs in different locations.  True    False

22. The HRM problems multinational companies face are completely different from those faced by international companies.  True    False
23. Multinational companies are increasingly employing inpatriates, increasing the need for cross-cultural training.  True    False
24. Transnational process refers to the extent to which the firm's planning and decision-making process includes representatives and ideas from a variety of cultures.  True    False
25. Global participation does not necessarily ensure that each country is providing managers to the company's ranks. This problem refers to transnational process.  True    False
26. The perception dimension refers to the skills that enable a manager to maintain a positive self-image and psychological well-being.  True    False
27. Allowances are often offered to make the expatriate...
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