IB Chapter 5
Trisha's firm has filled all of its key management positions with parent-country nationals. What kind of staffing policy is this company using? Polycentric Ethnocentric Domestic Narrow
Ethnocentric
HRM practices tend to be universal and it is unusual for an international company to change its policies in various countries. True False
False
The straw men theory that states that businesses should behave in a socially responsible manner, according to ethical custom and without deception and fraud is the _______. Greenspan Doctrine Friedman Doctrine Monroe Doctrine Yellen Doctrine
Friedman Doctrine
Refer to Table 17.1 Which staffing approach is notable because it uses human resources efficiently? Geocentric Polycentric Ethnocentric
Geocentric
It is wrong to cheat on a test. Conversely, it is right to accept responsibility for your actions. falsify information on a job application. plagiarize an essay. avoid paying taxes that you owe.
accept responsibility for your actions.
Some ethics experts have proposed practical guides or ethical ______ to make ethical decisions in a systematic way. etiquette patterns modus operandi algorithms
algorithms
Some ethics experts have proposed practical guides or ethical ______ to make ethical decisions in a systematic way. patterns etiquette modus operandi algorithms
algorithms
Renee is a citizen of France who has moved to the United States to work at Intel. Renee is an example of a(n) domestic. national. inpatriate. expatriate.
inpatriate
Unrealistic performance goals can often only be attained by bringing on additional support staff. working with a team. following all the rules. taking shortcuts or behaving in an unethical manner.
taking shortcuts or behaving in an unethical manner.
In the 1980s, Western businesses questioned the ethics of operating in South Africa because the apartheid system in place there required significant government bribes. legitimized the segregation of expatriates. created a competitive advantage. violated basic human rights.
violated basic human rights.
What is the final step companies should take when assessing ethical issues? Review moral intent Audit the company's decisions Determine stakeholder liability Establish objectives
Audit the company's decisions
Which ethical theory emphasizes that the best actions are those that benefit the most number of people and harm the least number of people? Utilitarianism Kantian Evangelism Protestantism
Utilitarianism
According to the text, compared to domestic managers, expatriates tend to leave their company at about twice the rate. rarely. 100 percent of the time. less than half as often.
at about twice the rate.
Many companies develop a formal statement of primary values and ethical standards for employees and managers to follow. This is called a code of honor. code of grievances. code of ethics. code of conduct.
code of ethics.
A firm's failure to understand that host-countries require different approaches to marketing and management is known as ______. tragedy of the commons expatriate failure cultural myopia factor endowments
cultural myopia
Ethical issues arise in international business when basic human rights are respected in all nations. there are multiple companies producing the same product at different consumer costs. environmental regulations in host nations are less stringent than those in the home country. all nations follow similar business practices.
environmental regulations in host nations are less stringent than those in the home country.
Pursuing strategies that are sustainable has little impact on helping an organization ensure that ethical issues are considered in business decisions. True False
False
Which congressional act outlaws the payment of bribes to foreign government officials to gain businesses? Foreign Money Laundering Control Act Corruption of Foreign Public Officials Act Foreign Corrupt Practices Act Prevention of Foreign Corruption Act
Foreign Corrupt Practices Act
The newly-hired human resource manager was told that it is company policy to find the best person for all management positions, regardless if that person is from the home country or is located in one of the company's international locations. Which staffing policy does this represent? Polycentric Ethnocentric Geocentric
Geocentric
An organization's code of ethics may be partially based on documents such as the United Nations Universal Declaration of _____________ ____________.
Human Rights
Jensen works for Hudson Department Stores which has locations all over the world. It is her job to determine the staffing needs for the holiday season for retail stores in the European market. Which activity is Jensen involved with? Economies of scale Human resource management Organization architecture Foreign direct investment
Human resource management
What helps managers walk away from a decision that is profitable, but not ethical? Moral ineptitude Rights theory Moral suasion Moral courage
Moral courage
Which staffing policy requires host-country nationals to be recruited to manage subsidiaries while parent-company nationals occupy key positions at corporate headquarters? Domestic Geocentric Ethnocentric Polycentric
Polycentric
Which staffing policy requires host-country nationals to be recruited to manage subsidiaries while parent-company nationals occupy key positions at corporate headquarters? Geocentric Domestic Polycentric Ethnocentric
Polycentric
______ policy is concerned with the selection and training of individuals for specific job functions. Multiple choice question. Production Marketing Staffing Supervisory
Staffing
Which company function involves selecting individuals to do certain jobs, as well as, promoting the desired culture of the firm? Performance evaluation Staffing policy Training Compensation
Staffing policy
The accepted principles of right and wrong that guide a person's decisions are called _____. attitudes ethics contexts beliefs
ethics
As compared to other staffing policies, a geocentric staffing policy is ______ to implement. expensive inexpensive
expensive
Customers, suppliers, and unions are all examples of ______ (internal or external?) stakeholders.
external
The Foreign Corrupt Practices Act was amended to include _____ because some U.S. businesses complained the act would put U.S. firms at a competitive disadvantage. agriculture production facilitating payments technological innovation services
facilitating payments
Select all that apply The two advantages of using a polycentric approach to staffing are: loss of technological know-how. use of expatriate managers. fewer cultural misunderstandings. less expensive to implement.
fewer cultural misunderstandings. less expensive to implement.
Even though there are several impediments to using it, the most attractive staffing policy in international businesses is the _____ approach. polycentric geocentric ethnocentric concentric
geocentric
One drawback to a polycentric staffing policy is that ________. host-country immigration laws may limit the hiring of home-country nationals. host-country nationals have less chance to gain international experience. the firm is more likely to suffer from cultural myopia. it is more expensive to implement than other policies.
host-country nationals have less chance to gain international experience.
Firms may be prevented from using a geocentric staffing policy because of ______ in the host country. immigration laws quotas cultural myopia tariff subsidies
immigration laws
Select all that apply According to research done by R. L. Tung, three common reasons U.S. multinationals experience expatriate failure include: inability to cope with larger overseas responsibilities. low compensation for undefined responsibilities. inability of spouse to adjust. lack of additional benefits for family needs. manager's personal or emotional maturity.
inability to cope with larger overseas responsibilities. inability of spouse to adjust. manager's personal or emotional maturity.
A(n) ______ is an employee of a multinational company who is from a foreign country, but is transferred from a foreign subsidiary to the corporation's headquarters. expatriate inpatriate
inpatriate
Employees, directors, and stockholders are examples of ________ (internal or external?) stakeholders.
internal
A(n) ______ distribution is one that is considered fair and equitable.
just
The fair and equitable dissemination of economic goods and services is the focus of a(n) _____ distribution. loaded biased equivalent just
just
The Hewlett-Packard example discussed in this chapter suggests that one cause of unethical behavior in a company can stem from _____. Multiple choice question. broad performance goals government demand leadership culture
leadership
According to Hofstede's theory, cultures high in masculinity and power distance are _____ (more or less?) likely to engage in unethical behavior. more less
more
Select all that apply The HRM function can help a firm achieve its primary strategic goals, including: correcting production development. reducing the cost of value creation. adding value by better serving customers. organizing logistical chains.
reducing the cost of value creation. adding value by better serving customers.
The _______ theories recognize that there are things we CANNOT do against individuals because they have certain moral, fundamental rights.
rights
During the interview, the personnel manager told Celine that the company hires individuals who display qualities of honesty, fairness, and open-mindedness—values that are also considered the mainstay of the company. The personnel manager is describing _____. the mission statement a polycentric staffing policy a geocentric staffing policy the corporate culture
the corporate culture
Jeanne was hired in part because she was comfortable with the company's norms and value systems. In other words, she was a good fit for the company's ______. affirmative action corporate culture expatriate allowance foreign direct investment
corporate culture
Marietta is visiting her company's manufacturing subcontractor in Pakistan. She notices children working on the machinery with no air conditioning and little access to water. But she also knows these children are probably supporting their families. Marietta can't decide if children working in the factory is appropriate or inappropriate. This is an example of a(n) ______. facilitating payment Sullivan principle tragedy of the commons ethical dilemma
ethical dilemma
The strengths of the ______ staffing policy are that it makes the best use of a company's human resources and it results in executives who are comfortable in a number of cultures. polycentric geocentric ethnocentric
geocentric
What is considered to be the linchpin that holds a firm's organizational architecture together? Structure Processes Culture People
People
What management position serves as the organization's internal control point for improprieties? Union Chief Chief Operating Officer Ethics Officer VP of Human Resources
Ethics Officer
All-Cool Refrigeration Corp. is concerned about transferring its core competencies to the company's new foreign operation in Argentina. Based on this, the company has decided to transfer parent-company nationals with knowledge of this core competency to the foreign location. Which type of staffing strategy does this represent? Polycentric Concentric Geocentric Ethnocentric
Ethnocentric
Select all that apply What are the three types of staffing policies that international companies can choose to implement? Ethnocentric Polycentric Concentric Geocentric Democentric
Ethnocentric Polycentric Geocentric
A performance appraisal would be part of an organization's ______ system. control delivery production cultural
control
Maria's boss asked her to do whatever it takes to secure a contract. Maria knows that paying a bribe would ensure that the contract would be signed, but walks away because she knows that while paying the bribe would ensure large profits, doing so would be unethical. Maria is demonstrating moral ______. courage accommodation imagination mission
courage
Host-country nationals would encounter the greatest limits on advancement opportunities when faced with a(n) ______ staffing policy. ethnocentric geocentric polycentric
ethnocentric
The generally accepted principles and values that govern interactions between individuals are called personal ethics. facilitating payments. social responsibilities. straw men.
personal ethics.
The major drawback to a(n) ______ staffing policy is the separation that might develop between host-country managers and parent-country managers. geocentric polycentric ethnocentric
polycentric
A(n) _____ strategy helps a company make good profits but does so without harming the environment. Kantian immoralist sustainable noblesse
sustainable
According to the text, the costs of expatriate failure for the parent company might be as much as ______ times the expatriate's annual domestic salary plus the cost of relocation. five ten three eight
three
TimeTurner Corp. is a company based in the United States that manufactures luxury wrist watches. By western standards, if the company uses sweatshop labor to make these watches, it is most likely to be considered moral. acceptable. unethical. disorganized.
unethical
Rights that are taken for granted in developed nations, such as freedom of association and freedom of speech are not followed in developed nations. accepted by most developing nations. highly respected in all the nations of the world. not universally accepted.
not universally accepted.
When making ethical decisions, ______ factors are stressed in Japan, while ______ factors are more important in the United States. Multiple choice question. organizational; individual or personal individual or personal; opportunity organizational; opportunity opportunity; individual or personal
organizational; individual or personal
Select all that apply The HRM function has a critical impact on which three elements of a firm's organizational architecture? Technology systems Incentive systems Culture People Production
Incentive systems Culture People
A firm's failure to understand that host-countries require different approaches to marketing and management is known as ______. expatriate failure tragedy of the commons factor endowments cultural myopia
cultural myopia
Lucia is responsible for establishing a confidential service that employees can use to question if a practice is unethical and she also makes sure the company complies with government laws and regulations. Lucia is an example of a(n) _____. human resource manager chief financial officer ethics officer sales manager
ethics officer
Since it may keep a firm from developing cultural myopia, the polycentric approach is a response to the shortcomings of the ______ approach. ethnocentric geocentric
ethnocentric
A(n) ______ manager is a citizen of one country who works abroad in a company's subsidiary. expatriate arbitrator HRM inpatriate
expatriate
Certain theories accept that there are rights, both positive and negative, that all humans have simply because they are human. These are called ______ theories. Friedman rights Kantian utilitarian
rights
John Smith is a Seattle, Washington native who works for Microsoft. The company sent him to manage a branch of the company in China, but he was homesick and returned home in six months. This is an example of expatriate failure. expatriation. inpatriate return. repatriation.
expatriate failure.
Select all that apply What are four determinants of ethical behavior? Personal ethics Humanism Leadership Social behavior law Organizational culture Societal culture
Personal ethics Leadership Organizational culture Societal culture
At Darla's company, the executives at headquarters are all parent-company nationals, but the foreign subsidiaries all have host-country presidents. This demonstrates the ______ staffing policy. polycentric geocentric ethnocentric
polycentric
The HRM function plays a valuable role in helping a firm achieve its primary strategic goals. True False
True
The decision-making process is one of the determinants of ethical behavior. True False
True
Select all that apply According to the text, which three actions can managers take to ensure that ethical issues are considered in business decision making? Invest in international businesses that promote advocacy. Build an organizational culture that values ethical behavior. Develop solid accounting and auditing practices. Favor hiring and promoting of people with a sense of personal ethics. Implement decision-making processes that consider ethical aspects of business decisions.
Build an organizational culture that values ethical behavior. Favor hiring and promoting of people with a sense of personal ethics. Implement decision-making processes that consider ethical aspects of business decisions.
______ is the lack of interest in learning about other cultures or recognizing what works in other cultures. Geocentric staffing Cultural myopia Perceptual ability Domestic performance
Cultural myopia
Select all that apply What two factors can affect a company's HRM policies when doing business in another country? Cultural practices Labor laws Availability of mass media Preference for personal selling
Cultural practices Labor laws
Celia, a product manager, advocated for the company to proceed with the development of the product even though it hadn't received FDA approval yet because she wanted to be the first to market with the product when it was approved. Jessica, the director of product development, felt this wasn't a good idea because early studies had shown that the product might be causing neurological problems in users and might need to be reformulated. Which step in the process to assess an ethical issue does this represent? Multiple choice question. Establishing moral intent Establishing objectives Identifying stakeholders Identifying the sample market
Establishing moral intent
_____ are situations where none of the available alternatives seems morally acceptable. Tragedy of the Commons Ethical dilemmas MNEs Facilitating payments
Ethical dilemmas
Which scenario is an example of expatriate failure? Multiple choice question. George, a U.S. citizen, manages an office for Verizon in New York. He requests an overseas transfer. Janis, a U.S. citizen, has been sent to Saudi Arabia to manage an office for Verizon. She is very unhappy and wants to return home. Marvin, a U.S. citizen, manages an office for Verizon in France. He requests a transfer to the Singapore office. Joanna, a U.S. citizen, manages an office for Verizon in Brazil. She requests a transfer to manage a larger district in Brazil.
Janis, a U.S. citizen, has been sent to Saudi Arabia to manage an office for Verizon. She is very unhappy and wants to return home.
Select all that apply Human resource management includes which three activities? Labor relations Sales forecasting Product marketing Staffing Performance evaluation
Labor relations Staffing Performance evaluation
Select all that apply What two things may occur as a result of the limits an ethnocentric staffing policy puts on advancement opportunities for host country nationals? Lower productivity Inferior benefits Stereotyping Resentment
Lower productivity Resentment
Which description of leader behavior is most likely to promote a strong ethical culture in an organization? Multiple choice question. The boss who makes quick decisions without anyone's input and then places the blame for problems on others. The boss who pays little regard to social norms and values and instead succeeds by his or her own set of rules. The boss who consistently demonstrates strong personal ethics in all dealings with clients. The boss who speaks strongly about personal ethics and at the same time encourages employees to do whatever it takes to succeed.
The boss who consistently demonstrates strong personal ethics in all dealings with clients.
Select all that apply What are two advantages of a geocentric staffing policy? The policy is inexpensive to implement. The executive team feels comfortable working in a variety of cultures. The firm makes best use of human resources. The policy bypasses immigration issues.
The executive team feels comfortable working in a variety of cultures. The firm makes best use of human resources.
What is an accurate description of developed nations with regard to the environment? They lack environmental laws and rules. They have a pollution free environment. They have more substantive environmental regulations. They import toxic chemicals from developing nations.
They have more substantive environmental regulations.
What is an example of a sustainable strategy? A strategy that depletes the environment for short-term economic gain A strategy designed to increase a company's carbon footprint A strategy that results in tragedy of the commons A strategy designed to reduce CO2 emissions
A strategy designed to reduce CO2 emissions
Business people may behave unethically simply because they forget to ask whether the decision or action they are making is ethical. True False
True
Japanese firms have historically used an ethnocentric staffing policy. True False
True Reason: Recent statistics show that only 29 percent of foreign subsidiaries of Japanese companies had presidents who were not Japanese.
As demonstrated by the Nike example in the text, which situation is generally MOST preferred when considering employment practices in international business? Multiple choice question. Having good working conditions in home operations, but holding foreign operations to the lower standards that are acceptable in that country Meeting required home standards, but permitting the use of child labor in the foreign country if it is the norm there Requiring good conditions in home and foreign operations even when this results in a smaller profit margin Requiring good conditions in home and foreign operations, but accepting subcontractor safety violations if it's more profitable
Requiring good conditions in home and foreign operations even when this results in a smaller profit margin
The managers of Simple Sound Manufacturing are struggling to meet their quota that was recently increased by upper management. They decide to eliminate two quality control steps in the manufacturing process. This is unethical behavior that was a result of following a strict codes of ethics. unrealistic performance goals. fraudulent accounting practices. the need to establish high quality standards.
Unrealistic performance goals
Celia, a product manager, advocated for the company to proceed with the development of the product even though it hadn't received FDA approval yet because she wanted to be the first to market with the product when it was approved. Jessica, the director of product development, felt this wasn't a good idea because early studies had shown that the product might be causing neurological problems in users and might need to be reformulated. Which step in the process to assess an ethical issue does this represent? Multiple choice question. Establishing objectives Establishing moral intent Identifying stakeholders Identifying the sample market
Establishing moral intent
Which international staffing policy seeks the best people for key jobs regardless of nationality? Skills centric Polycentric Monocentric Geocentric
Geocentric
Select all that apply Which two of Hofstede's dimensions are present in countries where ethical practices are commonly practiced? High in individualism High in uncertainty avoidance High in masculinity High in power distance
High in individualism High in uncertainty avoidance
Aiko is from Japan and recently moved from Japan to work at the U.S. headquarters of Toyota in Texas. In her U.S. job, Aiko is considered to be a(n) outsource. migrant. expatriate. U.S. citizen.
expatriate
According to the Friedman Doctrine, what is the only social responsibility a company has as long as it stays within the rules of law? Increasing profits Fostering employment Delivering goods Protecting humanity
Increasing profits
Select all that apply Which two theories provide the moral compass that is important when thinking through the ethical implications of decisions in a systematic way? Rawl's theory of justice The Friedman Doctrine Straw men theories Rights theories
Rawl's theory of justice Rights theories
______ ethics measure actions on a cost-benefit scale. Multiple choice question. Utilitarian Justice Rights theories Assimilation
Utilitarian
A company's organizational _____ reflects the values and norms that are shared among employees of an organization. culture hierarchy endowment vision
culture
Sanjay told his staff that the company didn't care if the components came from a company using sweatshop labor, the parts were needed to meet the order and the company needed the order to make the sales quota. In this situation, the company makes this decision based on purely _____ terms. social political economic ethical
economic
The Plume and Fabric manufacturing company abides by a strict code of providing the best in equipment, lighting, and overall working conditions for its 350 employees who create costumes for Broadway shows. While the company could save money by hiring less-skilled or underage labor to do the job, it knows that decision is not acceptable. This scenario demonstrates how a(n) _____ plays a role in the company's decisions. vision statement marketing plan mission statement ethical strategy
ethical strategy
As the chief operating officer at Winkle Construction Corp. in Miami, Florida, Jarek has decided that there aren't qualified individuals from the host country to staff the senior management positions at the company's new facility in Indonesia. Based on this information, which staffing policy makes the most sense for Winkle Construction Corp. to use? Geocentric Ethnocentric Polycentric Concentric
Ethnocentric
Refer to Figure 17.1. Within the organizational architecture of a firm, human resources is responsible for both structure and processes. True False
False Reason: Human resources is responsible for people, culture, and incentives and controls but not for structure or processes.
