Global HRM Exam 1 – Rutgers ACTUAL
Questions And CORRECT Answers
International Human Resource Management - CORRECT ANSWER - The study and
application of all human resource management activities as they impact the process of
management human resources in enterprises in the global environment.
Trade Agreements - CORRECT ANSWER - Decreased barriers and open markets have
resulted in fast growing economies through out the world. Local and national governments
support and encourage growing cross-border and foreign investment.
Center of global trade is moving away from developed countries. (Moving East)
Low-cost Country Sourcing (LCCS) - CORRECT ANSWER - Moving production
activities abroad to minimize costs.
Companies source materials from countries with lower labor and production costs in order to cut
operating expenses.
i.e. Labor costs, Material costs, Marketing costs, Legal costs, Financial costs, Taxation
E Commerce - CORRECT ANSWER - The World Wide Web, global transportation, and
logistics services have made it possible for large + small firms to conduct business virtually. If a
business has a website that can be reached by anyone anywhere it's considered global.
Homogenization of Culture and Consumer Demands - CORRECT ANSWER - Integration
of cultures and values have led to consumer demands for some types of products and services
throughout the world. Firms operating internationally need to be sensitive to differences in
cultures.
Internationalization - CORRECT ANSWER - The process of planning and implementing
products and services so that they can be easily adapted to specific local languages and cultures,
a process called localization.
, Globalization - CORRECT ANSWER - A process of interaction and integration among the
people, companies, and governments of different nations, a process driven by international trade
and investment aided by information technology.
The optimal trade-off between between globalization and localization.
Headquarters of Multinationals - CORRECT ANSWER - HRM professionals work in
central or regional headquarters of traditional headquarters of the traditional multinational
enterprises. (most common for HR managers) They use parent company policies and practices in
its foreign subsidiaries or use those that are common in host countries.
Subsidiaries - CORRECT ANSWER - A company owned by a holding company.
Foreign Owned Firms - CORRECT ANSWER - The complete or majority
ownership/control of a business or resource in a country by individuals that are not citizens of
that country, or by companies whose headquarters are not in that country.
Domestic Firms ("Domestic Multinationals") - CORRECT ANSWER - Hiring or
recruiting of immigrants or establishing small offices in other countries or recruit talent
"overseas" in order to meet needs for specialized skills. Can lead to many of the same
internationalization concerns as those faced by traditional MNEs.
Non Governmental Organization (NGOs) - CORRECT ANSWER - An organization that
is neither a part of a government nor a conventional for-profit business. Usually set up by
ordinary citizens, NGOs may be funded by governments, foundations, businesses, or private
persons.
International HRM (IHRM) - CORRECT ANSWER - Responsible for:
more HR functions
a broader expertise and perspective
greater involvement in people's lives
dealing with and managing wider mix of employees
more external factors and influences
Questions And CORRECT Answers
International Human Resource Management - CORRECT ANSWER - The study and
application of all human resource management activities as they impact the process of
management human resources in enterprises in the global environment.
Trade Agreements - CORRECT ANSWER - Decreased barriers and open markets have
resulted in fast growing economies through out the world. Local and national governments
support and encourage growing cross-border and foreign investment.
Center of global trade is moving away from developed countries. (Moving East)
Low-cost Country Sourcing (LCCS) - CORRECT ANSWER - Moving production
activities abroad to minimize costs.
Companies source materials from countries with lower labor and production costs in order to cut
operating expenses.
i.e. Labor costs, Material costs, Marketing costs, Legal costs, Financial costs, Taxation
E Commerce - CORRECT ANSWER - The World Wide Web, global transportation, and
logistics services have made it possible for large + small firms to conduct business virtually. If a
business has a website that can be reached by anyone anywhere it's considered global.
Homogenization of Culture and Consumer Demands - CORRECT ANSWER - Integration
of cultures and values have led to consumer demands for some types of products and services
throughout the world. Firms operating internationally need to be sensitive to differences in
cultures.
Internationalization - CORRECT ANSWER - The process of planning and implementing
products and services so that they can be easily adapted to specific local languages and cultures,
a process called localization.
, Globalization - CORRECT ANSWER - A process of interaction and integration among the
people, companies, and governments of different nations, a process driven by international trade
and investment aided by information technology.
The optimal trade-off between between globalization and localization.
Headquarters of Multinationals - CORRECT ANSWER - HRM professionals work in
central or regional headquarters of traditional headquarters of the traditional multinational
enterprises. (most common for HR managers) They use parent company policies and practices in
its foreign subsidiaries or use those that are common in host countries.
Subsidiaries - CORRECT ANSWER - A company owned by a holding company.
Foreign Owned Firms - CORRECT ANSWER - The complete or majority
ownership/control of a business or resource in a country by individuals that are not citizens of
that country, or by companies whose headquarters are not in that country.
Domestic Firms ("Domestic Multinationals") - CORRECT ANSWER - Hiring or
recruiting of immigrants or establishing small offices in other countries or recruit talent
"overseas" in order to meet needs for specialized skills. Can lead to many of the same
internationalization concerns as those faced by traditional MNEs.
Non Governmental Organization (NGOs) - CORRECT ANSWER - An organization that
is neither a part of a government nor a conventional for-profit business. Usually set up by
ordinary citizens, NGOs may be funded by governments, foundations, businesses, or private
persons.
International HRM (IHRM) - CORRECT ANSWER - Responsible for:
more HR functions
a broader expertise and perspective
greater involvement in people's lives
dealing with and managing wider mix of employees
more external factors and influences
