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web.groovymark@gmail.com
- December 14, 2024
Question 01
What is the primary purpose of “global organizational learning” in multinational enterprises (MNEs)?
a) To focus on training only host-country nationals
b) To create a learning culture that drives global competitiveness and innovation
c) To ensure compliance with local labor laws in all subsidiaries
d) To reduce the cost of expatriate training programs
Correct Answer: b) To create a learning culture that drives global competitiveness and innovation
Explanation: Global organizational learning is aimed at fostering a culture of continuous learning that enables multinational enterprises to remain competitive and innovative by leveraging knowledge and skills from across the globe.
Question 02
In the context of cultural dimensions, what does “assertiveness” refer to?
a) The extent to which people accept unequal power distribution
b) The degree to which individuals are direct, forceful, and confrontational in their relationships
c) The importance of social harmony and group cohesion
d) The level of future orientation and long-term planning in a society
Correct Answer: b) The degree to which individuals are direct, forceful, and confrontational in their relationships
Explanation: Assertiveness as a cultural dimension measures how direct and confrontational people are in their interactions, with high assertiveness cultures valuing competitiveness and strong leadership.
Question 03
What is the focus of the “iron law of social responsibility” in multinational enterprises (MNEs)?
a) Businesses should minimize their environmental impact at all costs
b) The power of businesses should be proportional to their social responsibilities
c) MNEs should prioritize economic goals over social goals
d) MNEs must comply with all host-country labor laws
Correct Answer: b) The power of businesses should be proportional to their social responsibilities
Explanation: The iron law of social responsibility emphasizes that the social responsibilities of a business should increase as its social power grows, ensuring a balance between business influence and accountability.
Question 04
What is the primary goal of “cross-cultural preparation” in global HR management?
a) To train expatriates to adjust to new business technologies
b) To equip employees with the skills needed to work effectively in different cultural settings
c) To standardize communication practices across all subsidiaries
d) To increase the efficiency of recruitment processes
- d) To increase the efficiency of recruitment processes
Correct Answer: b) To equip employees with the skills needed to work effectively in different cultural settings
Explanation: Cross-cultural preparation involves training employees to understand and adapt to the cultural norms and expectations of different countries, which is essential for success in global assignments.
Question 05
What does “NGO” stand for in the context of global HR management?
a) National Government Organization
b) Non-governmental organization
c) Network for Global Operations
d) Newly Globalized Organization
Correct Answer: b) Non-governmental organization
Explanation: NGO stands for non-governmental organization, which refers to nonprofit organizations that operate independently from governments and often play a role in international development and humanitarian efforts.
Question 06
What is the main purpose of “global talent management inventories” in multinational enterprises?
a) To create a database of expatriate assignments
b) To track and manage employee knowledge, skills, and abilities for talent development
c) To ensure compliance with local labor laws across all subsidiaries
d) To reduce the cost of expatriate compensation
Correct Answer: b) To track and manage employee knowledge, skills, and abilities for talent development
Explanation: Global talent management inventories are used to maintain detailed records of employees' skills, knowledge, and performance, helping MNEs to effectively manage and develop their global workforce.
Question 07
What does the term “convergence” refer to in the context of international human resource management (IHRM)?
a) The increasing use of local HR practices in global subsidiaries
b) The adoption of similar HR practices across countries due to globalization
c) The divergence of HR practices in response to local cultural differences
d) The reduction of employee benefits in response to cost-cutting measures
Correct Answer: b) The adoption of similar HR practices across countries due to globalization
Explanation: Convergence refers to the process where global businesses adopt similar HR practices, driven by factors such as technological advancements and best practices in management, reducing differences across countries.
Question 08
Which of the following best describes “divergence” in international human resource management?
a) The use of standardized global HR practices across all subsidiaries
b) The adaptation of HR practices to align with local cultural values and regulations
c) The centralization of HR decision-making at the headquarters level
d) The reduction of expatriate assignments in favor of local hires
Correct Answer: b) The adaptation of HR practices to align with local cultural values and regulations
Explanation: Divergence refers to the phenomenon where HR practices vary across countries, influenced by local cultural values, regulations, and business environments, rather than being standardized globally.
Question 09
In global HR management, what is “repatriating”?
a) Sending an expatriate to another foreign assignment
b) Terminating an expatriate’s contract before the assignment ends
c) Returning an expatriate to their home country after completing a foreign assignment
d) Hiring local employees to replace expatriates in the host country
Correct Answer: c) Returning an expatriate to their home country after completing a foreign assignment
Explanation: Repatriating refers to the process of bringing an expatriate and their family back to their home country after they have completed a foreign assignment.
Question 10
What is a key benefit of using “local nationals” (host-country nationals) in multinational enterprises?
a) They can centralize decision-making at the headquarters level
b) They bring deep local market knowledge and cultural understanding to the subsidiary
c) They reduce the need for performance evaluations
d) They require no formal training or development
Correct Answer: b) They bring deep local market knowledge and cultural understanding to the subsidiary
Explanation: Host-country nationals offer valuable local market knowledge and cultural insights, helping multinational enterprises operate more effectively in the local context.
Question 11
What is the main focus of “international assignment compensation”?
a) To reduce the cost of expatriate assignments by offering lower salaries
b) To provide expatriates with compensation and benefits that reflect the cost of living and hardship in the host country
c) To ensure that expatriates are paid the same as host-country nationals
d) To centralize compensation decisions at the headquarters level
Correct Answer: b) To provide expatriates with compensation and benefits that reflect the cost of living and hardship in the host country
Explanation: International assignment compensation is designed to provide expatriates with financial packages that account for differences in cost of living, taxes, and hardship in the host country, ensuring that their standard of living is maintained.
Question 12
What is the main objective of a “global mindset” in multinational enterprises?
a) To prioritize local customs over global business strategies
b) To focus only on cost-cutting strategies
c) To effectively navigate and manage across diverse cultures and markets
d) To centralize decision-making at the headquarters
Correct Answer: c) To effectively navigate and manage across diverse cultures and markets
Explanation: A global mindset enables leaders and employees in multinational enterprises to understand and adapt to different cultural contexts, ensuring effective management across diverse global markets.
Question 13
In the context of global HR, what does “expatriate” refer to?
a) A local employee hired to manage foreign subsidiaries
b) A parent-country national transferred to work in a foreign subsidiary for more than a year
c) A third-country national hired for a short-term assignment
d) An employee who works remotely from their home country
Correct Answer: b) A parent-country national transferred to work in a foreign subsidiary for more than a year
Explanation: An expatriate is an employee from the parent country who is assigned to work in a foreign subsidiary, typically for an extended period, often as a manager or specialist.
Question 14
What is the key challenge of “managing cultural diversity” in multinational teams?
a) Reducing recruitment costs
b) Managing communication barriers and differing cultural norms
c) Standardizing employee benefits across regions
d) Reducing the need for employee training
Correct Answer: b) Managing communication barriers and differing cultural norms
Explanation: Cultural diversity in multinational teams can create challenges related to communication, decision-making, and teamwork, as members may have different cultural expectations and communication styles.
Question 15
What does the “polycentric” approach to staffing involve in multinational enterprises?
a) Hiring parent-country nationals to manage all foreign subsidiaries
b) Delegating decision-making to the headquarters
c) Hiring host-country nationals to manage subsidiaries in their own country
d) Standardizing HR practices across all subsidiaries
Correct Answer: c) Hiring host-country nationals to manage subsidiaries in their own country
Explanation: The polycentric approach involves hiring host-country nationals to manage subsidiaries, as they have a deep understanding of the local culture, market, and business practices.
Question 16
In the context of expatriate assignments, what does “going native” mean?
a) Returning to the home country before the assignment ends
b) Adapting to the local culture and living like the locals, often with a long-term stay
c) Refusing to adopt local customs and maintaining home-country practices
d) Moving between different countries during the assignment
Correct Answer: b) Adapting to the local culture and living like the locals, often with a long-term stay
Explanation: "Going native" refers to expatriates who stay in a foreign location for an extended period and adapt to the local culture, often reducing living costs by adopting local customs and practices.
Question 17
What is the main objective of “international performance management”?
a) To eliminate the need for formal performance appraisals
b) To manage and evaluate the performance of global employees in alignment with organizational goals
c) To standardize compensation packages across all subsidiaries
d) To reduce training and development costs for expatriates
Correct Answer: b) To manage and evaluate the performance of global employees in alignment with organizational goals
Explanation: International performance management ensures that the performance of global employees aligns with the strategic objectives of the multinational enterprise and contributes to the overall success of the organization.
Question 18
What does “TCN” stand for in global HR management?
a) Third-country national
b) Temporary contract negotiation
c) Total compensation negotiation
d) Transcontinental national
Correct Answer: a) Third-country national
Explanation: TCN refers to third-country nationals, who are employees hired from a country other than the parent country or the host country, often for specific expertise or skills.
Question 19
What is a “host-country national” (HCN) in global HR management?
a) An employee sent from the headquarters to manage a foreign subsidiary
b) A local employee hired to work in their own country for a foreign subsidiary
c) An expatriate transferred to work in a different country
d) An employee who moves between multiple subsidiaries in different countries
Correct Answer: b) A local employee hired to work in their own country for a foreign subsidiary
Explanation: Host-country nationals are employees from the country where a foreign subsidiary is located, hired to work in that subsidiary, offering local expertise and cultural knowledge.
Question 20
What is the primary challenge of “managing virtual and global teams”?
a) Reducing the cost of employee benefits
b) Managing time zone differences, communication barriers, and cultural diversity
c) Centralizing decision-making at the headquarters
d) Eliminating the need for face-to-face meetings
Correct Answer: b) Managing time zone differences, communication barriers, and cultural diversity
Explanation: Managing virtual and global teams involves addressing challenges such as time zone differences, language barriers, and cultural diversity, which can affect communication and collaboration.
