SB Chapter 15.1

Which organization was established by the General Agreement on Tariffs and Trade (GATT) to seek solutions to conflicts between member-nations?

World Trade Organization (WTO)

What is the most important factor influencing international HRM?

a country's culture

A socialist economic system is characterized by a tax system that takes _____.

a higher percentage of income than a capitalist system does as a person moves up the economic ladder

According to Hofstede's research, countries with individualist cultures tend to _______.

be wealthy

Workers have economic incentives to invest in their individual human capital in ______ economic systems.

capitalist

What is the primary reason why HRM practices effective in the United States may not work in another country?

differences in culture

What are the factors that affect HRM policies in global markets? (Select all that apply.)

education-human capital economic system culture political-legal system

Countries with small power distances seek to ______.

eliminate inequalities in power and wealth

For a domestic company, what is typically the focus of its training programs?

employees' technical competence

What is the common currency used by the European Union (EU)?

euro

In general, companies first enter international markets by ______.

exporting their products

Cultures with strong uncertainty avoidance Blank______. (Select all that apply.)

have rules for how people should behave demonstrate inflexibility when dealing with differing viewpoints

Hofstede's cultural dimensions _______. (Select all that apply.)

help companies decide where to do business help companies know how to manage workers who come from different cultures

What HRM practices or requirements may be dictated by a country's political-legal system?

hiring and firing employee training compensation

Many multinational firms hire managers from different countries who become members of the corporate headquarters staff even though they are not from the parent country; these managers are called _______.

inpatriates

What is a possible benefit of operating a company facility in a foreign country?

labor costs may be lower

Which of Hofstede's cultural dimensions describes how a culture balances immediate benefits with future rewards?

long-term-short-term orientation

Which of Hofstede's cultural dimensions describes the division of roles between the sexes in a society?

masculinity-femininity dimension

A large power difference between a host country and a home country may cause ______ between the involved parties.

miscommunication

In an individualist culture, the extent of ______ is the main indicator of how long an employee will remain in a job.

person-job fit

"Feminine" societies value Blank______ more than "masculine" societies. (Select all that apply.)

serving other people community protecting the environment

The legal regulations pertaining to HRM practices in other countries typically reflect the country's _______.

societal norms

What factor indicates that human capital is high in a country?

the presence of educational opportunities for citizens

In determining a new location for international markets, companies must determine if ______. (Select all that apply.)

they can obtain and supervise human resources in the new location the legal system of the new location is conducive to business

How does international expansion provide companies with a competitive advantage? (Select all that apply.)

through access to some countries' low labor costs through access to more customers

What is the purpose of the General Agreement on Tariffs and Trade (GATT)?

to reduce trade barriers among its member-nations

True or false: North American Free Trade Agreement (NAFTA) member nations made up a larger free market than European Union (EU) member nations.

true

Which of Hofstede's cultural dimensions describes how cultures seek to deal with a future that cannot be completely predicted?

uncertainty avoidance

When does an international company become a multinational company?

when it builds facilities in a number of different countries

Companies considering an expansion into global markets must recognize that the new markets _____.

will be different in a number of ways from the home country

What are the main implications for HRM of cultural differences? (Select all that apply.)

Companies may need to adjust who makes decisions. Managers may need to adjust their managerial style. Companies may need to adjust how they encourage and inspire workers.

Which of the following statements about human capital is true?

Countries with low human capital attract facilities that require low skills and low wage levels.

Which countries were part of the North American Free Trade Agreement (NAFTA)?

Canada, United States, Mexico

Which Asian country has the largest potential consumer market for goods and services?

China

What phrase is used to describe the strength of the relation between an individual and other individuals in a society?

Individualism-collectivism

In general, what are some characteristics of a domestic company? (Select all that apply.)

It is often started by an entrepreneur. It offers a product or service that meets the needs of domestic consumers. It tends to employ local labor almost exclusively.

In addition to Japan and China, which Asian countries have recently become economic forces? (Select all that apply.)

Malaysia Singapore

Which of the following countries are considered collectivist cultures? (Select all that apply.)

Pakistan Colombia Taiwan

What has been the result of European countries coming together as members of the European Union (EU)? (Select all that apply.)

The European Union (EU) is a large, free-market economy. The economies of European Union (EU) member countries are closely intertwined.