CHAPTER 1: Introduction
TRUE/FALSE
1. An inpatriate is an employee transferred out of the home base into the firm’s international
organization.
ANS: F PTS: 1 TOP: Defining International HRM
2. The HR department is the major user of language translation services.
ANS: T PTS: 1
TOP: Differences between Domestic and International HRM
3. The IHR department does not get involved in the employee’s personal lives such as marital status
and children when considered for assignments.
ANS: F PTS: 1
TOP: Differences between Domestic and International HRM
4. Less developed countries tend to have cheaper labor but more government regulations.
ANS: F PTS: 1
TOP: Differences between Domestic and International HRM
5. Culture shock is a phenomenon experiences by people who move across cultures.
ANS: T PTS: 1 TOP: The Cultural Environment
6. A domestic HRM is involved with employees within one national boundary.
ANS: T PTS: 1 TOP: Defining International HRM
7. Compensation and benefit programs are not an activity of internal human resource management.
ANS: F PTS: 1 TOP: Defining International HRM
8. Awareness of cultural differences is not essential for the HR manager at corporate headquarters. It
is only important for expatriate employees as well as those at the host location.
ANS: F PTS: 1 TOP: The Cultural Environment
9. Multidomestic industries is one in which competition in each country is essentially independent of
competition in other countries.
ANS: T PTS: 1 TOP: Industry Type
10. Multinational organizations need to strive for consistency in the ways of managing people on a
worldwide basis in order to build, maintain and develop their corporate identity.
ANS: T PTS: 1 TOP: Industry Type
Copyright © Cengage Learning. All rights reserved. 1
, 11. Cultural awareness is reflected by knowing that local employees feel an obligation to employ
extended family even if they are unqualified for the position.
ANS: T PTS: 1 TOP: The Cultural Environment
12. If a firm is in a multidomestic industry, the role of HR department will most likely be more
domestic in structure and orientation.
ANS: T PTS: 1 TOP: Industry Type
13. A large home market is one of the key drivers for seeking a new international market.
ANS: F PTS: 1
TOP: Extent of Reliance of the Multinational on its Home-Country Domestic Market
14. Local HR activities, such as human resource planning and staffing, changes as a foreign subsidiary
matures.
ANS: T PTS: 1
TOP: Differences between Domestic and International HRM
15. The nationality of an employee is not a major factor in determining the person “category” in an
international firm.
ANS: F PTS: 1 TOP: Defining International HRM
16. Human considerations are as important as financial and marketing criteria in making decisions
about multinational ventures.
ANS: T PTS: 1 TOP: The Changing Context of IHRM
17. Global mindset is necessary for the success of an international company.
ANS: T PTS: 1
TOP: Attitudes of Senior Management to International Operations
18. The US had 8 companies in the top 30 multinationals ranked by the transnational index.
ANS: F PTS: 1
TOP: Extent of Reliance of the Multinational on its Home-Country Domestic Market
19. Cross- culture management is examining human behavior within organizations from an
international perspective.
ANS: T PTS: 1 TOP: Scope of the Book
20. The way diversity is managed within a single national context should transfer to a multinational
context without modification.
ANS: F PTS: 1 TOP: Defining International HRM
Copyright © Cengage Learning. All rights reserved. 2
TRUE/FALSE
1. An inpatriate is an employee transferred out of the home base into the firm’s international
organization.
ANS: F PTS: 1 TOP: Defining International HRM
2. The HR department is the major user of language translation services.
ANS: T PTS: 1
TOP: Differences between Domestic and International HRM
3. The IHR department does not get involved in the employee’s personal lives such as marital status
and children when considered for assignments.
ANS: F PTS: 1
TOP: Differences between Domestic and International HRM
4. Less developed countries tend to have cheaper labor but more government regulations.
ANS: F PTS: 1
TOP: Differences between Domestic and International HRM
5. Culture shock is a phenomenon experiences by people who move across cultures.
ANS: T PTS: 1 TOP: The Cultural Environment
6. A domestic HRM is involved with employees within one national boundary.
ANS: T PTS: 1 TOP: Defining International HRM
7. Compensation and benefit programs are not an activity of internal human resource management.
ANS: F PTS: 1 TOP: Defining International HRM
8. Awareness of cultural differences is not essential for the HR manager at corporate headquarters. It
is only important for expatriate employees as well as those at the host location.
ANS: F PTS: 1 TOP: The Cultural Environment
9. Multidomestic industries is one in which competition in each country is essentially independent of
competition in other countries.
ANS: T PTS: 1 TOP: Industry Type
10. Multinational organizations need to strive for consistency in the ways of managing people on a
worldwide basis in order to build, maintain and develop their corporate identity.
ANS: T PTS: 1 TOP: Industry Type
Copyright © Cengage Learning. All rights reserved. 1
, 11. Cultural awareness is reflected by knowing that local employees feel an obligation to employ
extended family even if they are unqualified for the position.
ANS: T PTS: 1 TOP: The Cultural Environment
12. If a firm is in a multidomestic industry, the role of HR department will most likely be more
domestic in structure and orientation.
ANS: T PTS: 1 TOP: Industry Type
13. A large home market is one of the key drivers for seeking a new international market.
ANS: F PTS: 1
TOP: Extent of Reliance of the Multinational on its Home-Country Domestic Market
14. Local HR activities, such as human resource planning and staffing, changes as a foreign subsidiary
matures.
ANS: T PTS: 1
TOP: Differences between Domestic and International HRM
15. The nationality of an employee is not a major factor in determining the person “category” in an
international firm.
ANS: F PTS: 1 TOP: Defining International HRM
16. Human considerations are as important as financial and marketing criteria in making decisions
about multinational ventures.
ANS: T PTS: 1 TOP: The Changing Context of IHRM
17. Global mindset is necessary for the success of an international company.
ANS: T PTS: 1
TOP: Attitudes of Senior Management to International Operations
18. The US had 8 companies in the top 30 multinationals ranked by the transnational index.
ANS: F PTS: 1
TOP: Extent of Reliance of the Multinational on its Home-Country Domestic Market
19. Cross- culture management is examining human behavior within organizations from an
international perspective.
ANS: T PTS: 1 TOP: Scope of the Book
20. The way diversity is managed within a single national context should transfer to a multinational
context without modification.
ANS: F PTS: 1 TOP: Defining International HRM
Copyright © Cengage Learning. All rights reserved. 2
