Test Bank for International Human Resource

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Test Bank for International Human Resource Management (Global HRM), 6e Ibraiz Tarique, Dennis Briscoe, Randall Schuler (All Chapters)

Chapter 1

The Internationalization of Human Resource Management

TRUE/FALSE

• The practice of IHRM was becoming and has now become more complex due to the management of

HRM in multiple countries.

ANS: T

• International human resource management is the study and application of all human resource

management activities as they impact managing human resources in enterprises in the global environ- ment.

ANS: T

• Over 7.8 million Americans worked for foreign-owned subsidiaries in 2018 in the United States.

ANS: T

• The term internationalization or globalization refers to the ever-increasing interaction, interconnected-

ness, and integration of people, companies, cultures, and countries.

ANS: T

• When a business internationalizes, the human resource management responsibilities, such as

recruitment and hiring, compensation, and health and safety, take on international characteristics re- quiring international human resource management professionals to facilitate human resource manage- ment practices with a global focus.

ANS: T

• Surveys show that enterprises from small or developing and emerging markets are not contributing

increasingly to global trade.

ANS: F

• As some economists put it, we are no longer in an era of globality (e.g., with everyone competing with

everyone from everywhere for everything).

ANS: F

• The many surveys and rankings of organizations, such as the Fortune Global 500, illustrate that the 1 / 4

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global economy is limited to technology products and services from numerous organizations located primarily in Asia.

ANS: F

• Fortune magazine developed a list of the top global companies for leaders.

ANS: T

• Bloomberg Businessweek has also developed a list of the 100 Best Global Brands, which includes

firms from over 40 countries,

ANS: F

• The United Nations Conference on Trade and Development (UNCTAD) tracks the world's Micro

MNEs, analyzing how important these firms are to the global economy.

ANS: F

• The UNCTAD developed the Transnational Index (TNI) based on the average of two ratios.

ANS: F

• The largest firms by foreign assets are not necessarily the largest by sales or number of employees.

ANS: T

• Exhibit 1.2 in the textbook shows the top 20 non-financial transnationals ranked by the value of their

foreign sales.

ANS: F

• The first most common setting for IHRM involves the HR manager working in his or her home

country but being employed by a local subsidiary or acquiring a foreign MNE.

ANS: F

MULTIPLE CHOICE

• Which of the following is a pressure driving the internationalization of business?

a .increased travel b .rapid and extensive global communication c .migration of large numbers of people d .all of the above

ANS: D

• Measures of the growth of international business include which of the following: 2 / 4

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a .the numbers of enterprises conducting business across borders b .the growth in foreign direct investment (FDI) c .the value of trade between countries d .all of the above

ANS: D

• Reasons for the need for most firms to consider internationalization and its impact on them from an

HR perspective include all of the following EXCEPT

a .the need to know how to merge cultures b .to develop strategies for managing diverse languages c .to effectively manage the HR budget

d .the need to address different expectations of employees from multiple countries

ANS: C

• The Transnational Index (TNI) was developed by

a .Large multinational organizations b .Fortune Magazine c .United Nations Conference on Trade and Development d .Harvard Business Review

ANS: C

• Which of the following job settings involves managing IHRM issues?

a .HR manager in a domestic (local) firm b .HR manager in a firm with foreign owners c .HR manager in regional headquarters of an MNE d .all of the above

ANS: D

• The HR manager working in their home country for a local subsidiary of a foreign MNE faces

particular challenges, including: 3 / 4

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a .being on the receiving end of policy and practice from foreign headquarters b .integrating local, national culture plus the foreign organizational culture c .a lack of understanding of employment laws and practices from the parent company d .all of the above

ANS: D

• In many countries, the domestic (local) firms confront IHRM specific challenges, including

a .responding to changes in local legislation b .the hiring of employees who come from another country c .training employees in the use of new systems d .all of the above

ANS: B

• The HR manager in a domestic (local) firm who recruits immigrants may have the same types of

internationalization concerns as those faced by traditional MNEs, such as:

a .merging cultures, languages, and work expectations b .managing people with different attitudes towards supervision c .managing different expectations of performance management and compensation d .all of the above

ANS: D

• The IHRM functions and activities associated with managing employees who are sent on international

assignments include all of the following EXCEPT a .understanding foreign taxes b .lowering the level of risk and liabilities c .work visas d .assistance with international relocations

ANS: B

• Which of the following is not how IHRM differs from domestic HRM?
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