TEST BANK International Human Resource Management 6th Edition
Chapter 01 : The Internationalization of Human Resource Management
TRUE/FALSE
1. The practice of IHRM was becoming and has now become more complex due to the management of
HRM in multiple countries.
ANS: T
2. 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
3. Over 7.8 million Americans worked for foreign-owned subsidiaries in 2018 in the United States.
ANS: T
4. The term internationalization or globalization refers to the ever-increasing interaction, interconnected-
ness, and integration of people, companies, cultures, and countries.
ANS: T
5. 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
6. Surveys show that enterprises from small or developing and emerging markets are not contributing
increasingly to global trade.
ANS: F
7. 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
8. The many surveys and rankings of organizations, such as the Fortune Global 500, illustrate that the
global economy is limited to technology products and services from numerous organizations located
primarily in Asia.
ANS: F
9. Fortune magazine developed a list of the top global companies for leaders.
ANS: T
1
, 10. Bloomberg Businessweek has also developed a list of the 100 Best Global Brands, which includes
firms from over 40 countries,
ANS: F
11. 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
12. The UNCTAD developed the Transnational Index (TNI) based on the average of two ratios.
ANS: F
13. The largest firms by foreign assets are not necessarily the largest by sales or number of employees.
ANS: T
14. Exhibit 1.2 in the textbook shows the top 20 non-financial transnationals ranked by the value of their
foreign sales.
ANS: F
15. 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
1. 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
2. Measures of the growth of international business include which of the following:
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
.
2
, ANS: D
3. 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
4. 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
5. 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
6. The HR manager working in their home country for a local subsidiary of a foreign MNE faces
particular challenges, including:
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
.
3
, ANS: D
7. 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
8. 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
9. 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
10. Which of the following is not how IHRM differs from domestic HRM?
a more HR functions and activities
.
b broader expertise and perspective
.
c less involvement in people's lives
.
d more external factors and influences
.
ANS: C
4
Chapter 01 : The Internationalization of Human Resource Management
TRUE/FALSE
1. The practice of IHRM was becoming and has now become more complex due to the management of
HRM in multiple countries.
ANS: T
2. 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
3. Over 7.8 million Americans worked for foreign-owned subsidiaries in 2018 in the United States.
ANS: T
4. The term internationalization or globalization refers to the ever-increasing interaction, interconnected-
ness, and integration of people, companies, cultures, and countries.
ANS: T
5. 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
6. Surveys show that enterprises from small or developing and emerging markets are not contributing
increasingly to global trade.
ANS: F
7. 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
8. The many surveys and rankings of organizations, such as the Fortune Global 500, illustrate that the
global economy is limited to technology products and services from numerous organizations located
primarily in Asia.
ANS: F
9. Fortune magazine developed a list of the top global companies for leaders.
ANS: T
1
, 10. Bloomberg Businessweek has also developed a list of the 100 Best Global Brands, which includes
firms from over 40 countries,
ANS: F
11. 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
12. The UNCTAD developed the Transnational Index (TNI) based on the average of two ratios.
ANS: F
13. The largest firms by foreign assets are not necessarily the largest by sales or number of employees.
ANS: T
14. Exhibit 1.2 in the textbook shows the top 20 non-financial transnationals ranked by the value of their
foreign sales.
ANS: F
15. 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
1. 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
2. Measures of the growth of international business include which of the following:
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
.
2
, ANS: D
3. 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
4. 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
5. 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
6. The HR manager working in their home country for a local subsidiary of a foreign MNE faces
particular challenges, including:
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
.
3
, ANS: D
7. 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
8. 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
9. 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
10. Which of the following is not how IHRM differs from domestic HRM?
a more HR functions and activities
.
b broader expertise and perspective
.
c less involvement in people's lives
.
d more external factors and influences
.
ANS: C
4
