,Chapter 1
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
1
, 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
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:
2
, 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
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:
3
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
1
, 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
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:
2
, 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
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:
3
