Free Essay

Human Resource Managment

In:

Submitted By gericker
Words 4709
Pages 19
CH 8
MULTIPLE CHOICE 1. The major reason that Chinese firms can invest in buying U.S., European, and South American firms is
|a. |government policies in these regions that encourage foreign direct investment. |
|b. |its vast foreign-exchange reserves from its trade surplus. |
|c. |increasing anxiousness of owners in developed countries to “cash-out” and take profits rather than continue to operate |
| |businesses. |
|d. |the economic downturn in these regions which has made the purchase price for firms relatively cheap. |

ANS: B PTS: 1 DIF: Medium REF: 229
OBJ: 08-01 TYPE: application 2. The impact of China on the world economy is due to
|a. |the size of its domestic market. |
|b. |the movement away from Communism by the Chinese government. |
|c. |its highly-competitive state-owned firms. |
|d. |the lack of protection for intellectual property rights. |

ANS: A PTS: 1 DIF: Easy REF: 230
OBJ: 08-01 TYPE: knowledge 3. In order for firms to successfully exploit international markets, managers must have
|a. |a strong national identity. |
|b. |cross-functional integration skills. |
|c. |command of foreign languages. |
|d. |a global mindset. |

ANS: D PTS: 1 DIF: Easy REF: 231
OBJ: 08-01 TYPE: comprehension 4. International strategy refers to a(an)
|a. |action plan pursued by American companies to compete against foreign companies operating in the United States. |
|b. |strategy through which the firm sells products in markets outside the firm's domestic market. |
|c. |political and economic action plan developed by businesses and governments to cope with global competition. |
|d. |strategy American firms use to dominate international markets. |

ANS: B PTS: 1 DIF: Easy REF: 232
OBJ: 08-01 TYPE: knowledge 5. Raymond Vernon states that the classic rationale for international diversification is to
| a. |pre-emptively dominate world markets before foreign companies can establish dominance. |
|b. |avoid domestic governmental regulation. |
|c. |extend the product's life cycle. |
|d. |expand the sales of the firm domestically. |

ANS: C PTS: 1 DIF: Medium REF: 232
OBJ: 08-01 TYPE: knowledge 6. Which of the following is NOT a motive for firms to become multinational?
|a. |to take advantage of potential opportunities to expand the market for the firm's products. |
|b. |to secure needed resources. |
|c. |to avoid high domestic taxation on corporate income. |
|d. |increasing universal product demand. |

ANS: C PTS: 1 DIF: Medium REF: 232
OBJ: 08-01 TYPE: comprehension 7. The increased pressures for global integration of operations have been driven mostly by
|a. |new low cost entrants. |
|b. |universal product demand. |
|c. |increased levels of joint ventures. |
|d. |the rise of governmental regulation. |

ANS: B PTS: 1 DIF: Easy REF: 232
OBJ: 08-01 TYPE: comprehension 8. U.S. companies moving into the international market need to be sensitive to the need for local country or regional responsiveness due to
|a. |increasing rejection of American culture across much of the world. |
|b. |the sophistication of the international consumer due to the Internet. |
|c. |customization required by cultural differences. |
|d. |the increasing loss of economies of scale. |

ANS: C PTS: 1 DIF: Medium REF: 233
OBJ: 08-01 TYPE: comprehension 9. Which of the following is NOT a factor pressuring companies for local responsiveness?
|a. |the need for local repair and service to customers |
|b. |customization due to cultural differences |
|c. |government pressure for firms to use local sources for procurement |
|d. |availability of low labor costs |

ANS: D PTS: 1 DIF: Hard REF: 233
OBJ: 08-01 TYPE: comprehension 10. The motivations for expanding into international markets include each of the following opportunities EXCEPT
|a. |increasing the size of the firm's potential markets. |
|b. |gaining economies of scale. |
|c. |gaining a competitive advantage through location. |
|d. |favorable tax concessions and economic incentives by home-country governments. |

ANS: D PTS: 1 DIF: Medium REF: 233
OBJ: 08-01 TYPE: comprehension 11. Beer companies entered the global market because of
|a. |fully-exploited domestic markets for beer. |
|b. |lower labor costs in the emerging markets. |
|c. |economies of scale offset research and development costs. |
|d. |growing consumer preference in the developed world for beer over wine. |

ANS: A PTS: 1 DIF: Medium REF: 233
OBJ: 08-02 TYPE: application 12. Moving into international markets is a particularly attractive strategy to firms whose domestic markets
|a. |demand a differentiation strategy for success. |
|b. |are limited in opportunities for growth. |
|c. |have developed unfriendly business attitudes toward the industry. |
|d. |have too much regulation. |

ANS: B PTS: 1 DIF: Medium REF: 233
OBJ: 08-02 TYPE: comprehension 13. Most R&D intensive industries are international because
|a. |of the need to make use of scientific talent in many nations. |
|b. |large markets are necessary for earning above-average returns on investments. |
|c. |of mandatory requirements by emerging economies that firms take part in joint ventures or direct investment in the |
| |country in order to sell their products in that country. |
|d. |intellectual property is copied so rapidly that firms must move products into the international market immediately. |

ANS: B PTS: 1 DIF: Hard REF: 234
OBJ: 08-02 TYPE: comprehension 14. Optimal economies of scale in the international market for a standardized product derive from
|a. |the ability to use similar production facilities. |
|b. |effective investment in research and development. |
|c. |access to a low-cost labor force. |
|d. |rapid advances in new technology. |

ANS: A PTS: 1 DIF: Medium REF: 234-235
OBJ: 08-02 TYPE: comprehension 15. Firms with core competencies that can be exploited across international markets are able to
|a. |achieve synergies and produce high quality goods at lower costs. |
|b. |enter new markets more quickly. |
|c. |enhance their market image and brand loyalty among local consumers. |
|d. |meet local government requirements more quickly than their international competitors. |

ANS: A PTS: 1 DIF: Medium REF: 235
OBJ: 08-02 TYPE: comprehension 16. The location advantages associated with locating facilities in other countries can include all of the following EXCEPT
|a. |lower cost labor. |
|b. |access to critical supplies. |
|c. |access to customers. |
|d. |evasion of host country governmental regulations. |

ANS: D PTS: 1 DIF: Medium REF: 235
OBJ: 08-02 TYPE: comprehension 17. Factors of production in Porter's model of international competitive advantage include all of the following EXCEPT
|a. |labor. |
|b. |capital. |
|c. |infrastructure. |
|d. |technology. |

ANS: D PTS: 1 DIF: Easy REF: 236
OBJ: 08-03 TYPE: knowledge 18. In Porter's model, a specialized factor of production would include
|a. |abundant natural resources. |
|b. |a large workforce. |
|c. |an extensive highway transportation system. |
|d. |workers with advanced engineering skills. |

ANS: D PTS: 1 DIF: Hard REF: 236
OBJ: 08-03 TYPE: comprehension 19. South Korea is a successful international competitor
|a. |even though it is deficient in all four factors of production in Porter's model. |
|b. |in part because it has extensive expertise in manufacturing. |
|c. |in part because it has a large, docile, unskilled workforce. |
|d. |it has an abundance of natural resources. |

ANS: B PTS: 1 DIF: Hard REF: 236
OBJ: 08-03 TYPE: knowledge 20. All of the following are international corporate-level strategies EXCEPT the ____ strategy.
|a. |Multidomestic |
|b. |Universal |
|c. |Global |
|d. |Transnational |

ANS: B PTS: 1 DIF: Easy REF: 236
OBJ: 08-03 TYPE: knowledge 21. A fundamental reason for a country's development of advanced and specialized factors of production is often its
|a. |lack of basic resources. |
|b. |monetary wealth. |
|c. |small workforce. |
|d. |protective tariffs. |

ANS: A PTS: 1 DIF: Medium REF: 236
OBJ: 08-03 TYPE: comprehension 22. The four aspects of Porter's model of international competitive advantage include all of the following EXCEPT
|a. |factors of production. |
|b. |demand conditions. |
|c. |political and economic institutions. |
|d. |related and supporting industries. |

ANS: C PTS: 1 DIF: Hard REF: 237 (Figure 8.2)
OBJ: 08-03 TYPE: knowledge 23. In France, fine dressmaking and tailoring have been a tradition predating Queen Marie Antoinette. Cloth manufacturers, design schools, craft apprenticeship programs, modeling agencies, and so forth, all exist to supply the clothing industry. This is an example of the ____ in Porter's model.
|a. |strategy, structure and rivalry among firms |
|b. |related and supporting industries |
|c. |demand conditions |
|d. |factors of production |

ANS: B PTS: 1 DIF: Medium REF: 237
OBJ: 08-03 TYPE: application 24. A large domestic market can provide the country’s industries a chance at dominating the world market because
|a. |they have been able to develop economies of scale at home. |
|b. |they have access to abundant and inexpensive factors of production. |
|c. |the related and supporting industries will have been developed. |
|d. |the nation’s culture and educational system will be adapted to producing the labor force needed for the industry. |

ANS: A PTS: 1 DIF: Hard REF: 237-238
OBJ: 08-03 TYPE: comprehension 25. In addition to the four basic dimensions of Porter's "diamond" model, ____ may also contribute to the success or failure of firms.
|a. |national work ethic |
|b. |educational requirements |
|c. |government policy |
|d. |national pride |

ANS: C PTS: 1 DIF: Medium REF: 238
OBJ: 08-03 TYPE: comprehension 26. A multidomestic corporate-level strategy is one in which
|a. |a corporation chooses not to compete internationally but where there are a number of international competitors in the |
| |firm's local marketplace. |
|b. |the firm produces a standardized product, but markets it differently in each country in which it competes. |
|c. |the firm customizes the product for each country in which it competes. |
|d. |the firm competes in a number of countries, but it is centrally coordinated by the home office. |

ANS: C PTS: 1 DIF: Medium REF: 239
OBJ: 08-03 TYPE: knowledge 27. A global corporate-level strategy emphasizes
|a. |differentiated products. |
|b. |economies of scale. |
|c. |sensitivity to local product preferences. |
|d. |decentralizing control and limited monitoring. |

ANS: B PTS: 1 DIF: Medium REF: 239
OBJ: 08-03 TYPE: comprehension 28. A global corporate-level strategy differs from a multidomestic corporate-level strategy in that in a global strategy
|a. |competitive strategy is dictated by the home office. |
|b. |competitive strategy is decentralized and controlled by individual strategic business units. |
|c. |products are customized to meet the individual needs of each country. |
|d. |the firm sells in multiple countries. |

ANS: A PTS: 1 DIF: Medium REF: 239-240
OBJ: 08-03 TYPE: comprehension 29. A global strategy
|a. |is easy to manage because of common operating decisions across borders. |
|b. |achieves efficient operations without sharing resources across country boundaries. |
|c. |increases risk because decision-making is centralized at the home office. |
|d. |lacks responsiveness to local markets. |

ANS: D PTS: 1 DIF: Medium REF: 240
OBJ: 08-03 TYPE: comprehension 30. International corporate-level strategy focuses on
|a. |the scope of operations through both product and geographic diversification. |
|b. |competition within each country. |
|c. |economies of scale. |
|d. |sophistication of monitoring and controlling systems. |

ANS: A PTS: 1 DIF: Easy REF: 240
OBJ: 08-03 TYPE: knowledge 31. A global corporate-level strategy assumes
|a. |efficiency and customization can be achieved simultaneously. |
|b. |a rise in income levels across the world. |
|c. |increasing levels of cultural differences among nations. |
|d. |more standardization of products across country markets. |

ANS: D PTS: 1 DIF: Medium REF: 240
OBJ: 08-03 TYPE: comprehension 32. A transnational corporate-level strategy seeks to achieve
|a. |customization for the local market. |
|b. |economies of scale and centralized strategic control. |
|c. |global efficiency and local responsiveness. |
|d. |standardization of products across countries. |

ANS: C PTS: 1 DIF: Medium REF: 241
OBJ: 08-03 TYPE: knowledge 33. Increasingly, customers worldwide are demanding emphasis on local requirements and companies are needing efficiency as global competition increases. This has triggered an increase in the number of firms using the ____ strategy.
|a. |Multidomestic |
|b. |Transnational |
|c. |Universal |
|d. |Global |

ANS: B PTS: 1 DIF: Medium REF: 241
OBJ: 08-04 TYPE: comprehension 34. Terrorist attacks
|a. |encourage firms to take truly global corporate strategies in order to offset losses in one region with gains in another.|
|b. |are considered a “cost of doing business” by international firms. |
|c. |have not decreased the level of international investment in any region except those involved in active wars. |
|d. |increase the liability of foreignness for firms. |

ANS: D PTS: 1 DIF: Medium REF: 241
OBJ: 08-07 TYPE: comprehension 35. Whirlpool’s development of centers of excellence in various world regions that develop appliance designs most suited for that region and manufacture the appliances in that region, combined with a global network of distribution and appliance-manufacturing centers shows Whirlpool’s move toward the ____ strategy.
|a. |Multidomestic |
|b. |Boundaryless |
|c. |Global |
|d. |Transnational |

ANS: D PTS: 1 DIF: Medium REF: 242-243
OBJ: 08-03 TYPE: application 36. Research shows that ____ strategies are not as prevalent as once thought, and that they are very difficult to implement. In fact, these strategies are becoming relatively less attractive to firms than other approaches to international competitiveness. To some extent, this is a result of the liability of foreignness.
|a. |Transnational |
|b. |Multidomestic |
|c. |Global |
|d. |Regional |

ANS: C PTS: 1 DIF: Hard REF: 243
OBJ: 08-04 TYPE: comprehension 37. The widespread use of the Internet has
|a. |resulted in the near-elimination of the liability of foreignness. |
|b. |reduced the impact of economies of scale. |
|c. |allowed firms to inexpensively build an initial business in a foreign country. |
|d. |has fostered global strategies rather than multidomestic strategies. |

ANS: C PTS: 1 DIF: Hard REF: 243-244
OBJ: 08-04 TYPE: comprehension 38. Multinational trade agreements such as the European Union, Organization of American States, and the North American Free Trade Association, encourage
|a. |globalization. |
|b. |domestication. |
|c. |regionalization. |
|d. |nationalization. |

ANS: C PTS: 1 DIF: Easy REF: 244
OBJ: 08-04 TYPE: knowledge 39. A firm may narrow its focus to a specific region of the world
|a. |because that market is most different from its domestic market and so represents an unexploited “greenfield opportunity”|
| |for its products. |
|b. |in order to obtain greater economies of scale. |
|c. |because of political and economic agreements such as the European Union and the North American Free Trade Association. |
|d. |to take advantage of limited protections of intellectual property so that it can manufacture innovative products without|
| |restrictions. |

ANS: C PTS: 1 DIF: Medium REF: 245
OBJ: 08-04 TYPE: comprehension 40. Most firms enter international markets sequentially, introducing their ____ first.
|a. |most innovative products |
|b. |largest and strongest lines of business |
|c. |most generic products, which will be more likely to generate universal product demand, |
|d. |products customized to the region |

ANS: B PTS: 1 DIF: Hard REF: 245
OBJ: 08-04 TYPE: comprehension 41. A U.S. manufacturer of adaptive devices for persons with disabilities is considering expanding internationally. It is a fairly small company, but it is looking for growth opportunities. This company should primarily consider the option of
|a. |licensing. |
|b. |exporting. |
|c. |a strategic alliance. |
|d. |a greenfield venture. |

ANS: B PTS: 1 DIF: Medium REF: 245
OBJ: 08-05 TYPE: application 42. The choices that a firm has for entering the international market include all of the following EXCEPT
|a. |exporting. |
|b. |licensing. |
|c. |leasing. |
|d. |acquisition. |

ANS: C PTS: 1 DIF: Easy REF: 245 (Table 8.1)
OBJ: 08-05 TYPE: comprehension 43. The problems associated with exporting include
|a. |merging corporate cultures. |
|b. |a partner's incompatibility. |
|c. |difficulty in negotiating relationships. |
|d. |high transportation costs. |

ANS: D PTS: 1 DIF: Medium REF: 246
OBJ: 08-05 TYPE: comprehension 44. Lands’ End is an example of a
|a. |company that could expand globally after acquisition by a large, international firm (Sears) provided the resources. |
|b. |firm that has entered international markets by acquiring local retailers who know the host countries’ markets. |
|c. |smaller firm that can sell products globally without large facilities overseas. |
|d. |company using a web-based marketing and distribution process was not able to break into the international market due to |
| |lack of customization. |

ANS: C PTS: 1 DIF: Medium REF: 245-246
OBJ: 08-04 TYPE: application 45. Which of the following is NOT a disadvantage associated with exporting?
|a. |potential loss of proprietary technologies |
|b. |high transportation costs |
|c. |loss of control over distribution activities |
|d. |tariffs imposed by local governments |

ANS: A PTS: 1 DIF: Hard REF: 246
OBJ: 08-05 TYPE: comprehension 46. A licensing agreement
|a. |results in two firms agreeing to share the risks and the resources of a new venture. |
|b. |is best way to protect proprietary technology from future competitor. |
|c. |allows a foreign firm to purchase the rights to manufacture and sell a firm's products within a host country. |
|d. |can be greatly impacted by currency exchange rate fluctuations. |

ANS: C PTS: 1 DIF: Medium REF: 246
OBJ: 08-05 TYPE: knowledge 47. Which of the following is NOT a typical disadvantage of licensing?
|a. |little control over the marketing of the products |
|b. |licensees may develop a competitive product after the license expires |
|c. |lower potential returns than the use of exporting or strategic alliances |
|d. |incompatibility of the licensing partners |

ANS: D PTS: 1 DIF: Medium REF: 246-247
OBJ: 08-05 TYPE: comprehension 48. Host countries with emerging economies may encourage local firms to engage in strategic alliances with firms from developing countries because
|a. |assets from the investing foreign company can be nationalized later. |
|b. |disruption to the host-country’s economy will be minimal |
|c. |there will be less cultural conflict than in licensing arrangements. |
|d. |the host-country firm gains access to the foreign firm’s technology. |

ANS: D PTS: 1 DIF: Medium REF: 247
OBJ: 08-05 TYPE: comprehension 49. One of the primary reasons for failure of cross-border strategic alliances is
|a. |the incompatibility of the partners. |
|b. |conflict between legal and business systems. |
|c. |security concerns and terrorism. |
|d. |high debt financing. |

ANS: A PTS: 1 DIF: Medium REF: 248
OBJ: 08-05 TYPE: comprehension 50. In situations where there is high uncertainty, where cooperation is needed, and where strategic flexibility is important, ____ are most likely to succeed.
|a. |licensing strategies |
|b. |strategic alliances |
|c. |Acquisitions |
|d. |new wholly owned subsidiaries |

ANS: B PTS: 1 DIF: Hard REF: 248
OBJ: 08-05 TYPE: comprehension 51. Which of the following is NOT a disadvantage of international acquisitions?
|a. |They are very expensive and often require debt financing. |
|b. |The acquiring firm has to deal with the regulatory requirements of a host country. |
|c. |Merging the acquired and acquiring firm is difficult. |
|d. |It is the slowest way to enter a new market. |

ANS: D PTS: 1 DIF: Medium REF: 248-249
OBJ: 08-05 TYPE: comprehension 52. The means of entry into international markets that offers the greatest control is
|a. |licensing. |
|b. |acquisitions. |
|c. |joint ventures. |
|d. |greenfield ventures. |

ANS: D PTS: 1 DIF: Medium REF: 249
OBJ: 08-05 TYPE: comprehension 53. Which of the following is an advantage associated with greenfield ventures?
|a. |governmental support and subsidies in the host country |
|b. |the lower cost of this type of venture |
|c. |the level of control over the firm's technology, marketing and distribution |
|d. |the lower level of risks involved |

ANS: C PTS: 1 DIF: Medium REF: 249
OBJ: 08-05 TYPE: comprehension 54. If intellectual property rights in an emerging economy are not well-protected, the number of firms in the industry is rapidly growing, and the need for global integration is high, ____ is the preferred entry mode.
|a. |Exporting |
|b. |strategic alliance |
|c. |wholly-owned subsidiary |
|d. |Licensing |

ANS: C PTS: 1 DIF: Medium REF: 250
OBJ: 08-05 TYPE: comprehension 55. The decision of what entry mode to use is primarily based on all of the following factors EXCEPT
|a. |the industry’s competitive conditions. |
|b. |the country’s situation and government policies. |
|c. |the worldwide economic situation. |
|d. |the firm’s unique set of resources, capabilities, and core competencies. |

ANS: C PTS: 1 DIF: Hard REF: 250
OBJ: 08-05 TYPE: comprehension 56. Some large diversified business groups in emerging economies, such as Korean chaebols, have specialized management abilities that allow them to successfully ____ in emerging economies.
|a. |make acquisitions |
|b. |coordinate international joint ventures |
|c. |establish greenfield ventures |
|d. |set up licensing arrangements |

ANS: A PTS: 1 DIF: Medium REF: 250
OBJ: 08-05 TYPE: knowledge 57. When a firm initially becomes internationally diversified, its returns
|a. |remain stable. |
|b. |decrease. |
|c. |become more variable. |
|d. |increase. |

ANS: B PTS: 1 DIF: Medium REF: 251
OBJ: 08-06 TYPE: knowledge 58. Which of the following is NOT one of the advantages associated with international diversification?
|a. |reduction of overall risk |
|b. |ease of coordination |
|c. |economies of scale |
|d. |stabilization of returns |

ANS: B PTS: 1 DIF: Medium REF: 251
OBJ: 08-06 TYPE: comprehension 59. A nation's competitiveness depends on the capacity of its industry to ____ and thereby maintain its competitive advantage.
|a. |diversify internationally |
|b. |have access to critical resources |
|c. |protect its proprietary capabilities |
|d. |Innovate |

ANS: D PTS: 1 DIF: Medium REF: 252
OBJ: 08-06 TYPE: comprehension 60. Internationally diversified firms
|a. |earn greater returns on innovation than firms operating only in domestic markets. |
|b. |are more likely to produce below-average returns for investors in the long run. |
|c. |may need to decrease international activities when domestic profits are poor. |
|d. |are generally unable to achieve high levels of synergy because of differences in cultures. |

ANS: A PTS: 1 DIF: Medium REF: 252
OBJ: 08-06 TYPE: comprehension 61. A product-diversified firm in Kenya has been approached by several large U.S. firms looking for prospective partners. From the perspective of the Kenyan firm, the best partner would be:
|a. |an internationally-diversified U.S.-headquartered firm that is not product-diversified. |
|b. |a U.S. firm than is making its first venture into international diversification. |
|c. |a U.S. firm that is both internationally and product diversified. |
|d. |No U.S. firm will be a good partner for the Kenyan firm because of the cultural differences. |

ANS: A PTS: 1 DIF: Hard REF: 252
OBJ: 08-06 TYPE: application 62. Instability in a national government creates all the following problems EXCEPT
|a. |corruption. |
|b. |economic risks and uncertainty created by government regulation. |
|c. |theft of intellectual property. |
|d. |conflicting legal authorities. |

ANS: C PTS: 1 DIF: Medium REF: 253-254
OBJ: 08-07 TYPE: comprehension 63. Bunyan Heavy Equipment, a U.S. firm, is investigating expanding into Russia using a greenfield venture. The committee researching this project has delivered a negative report. The main concern of the committee is probably
|a. |loss of intellectual property due to Russian piracy. |
|b. |the fluctuation in the value of the ruble. |
|c. |the numerous and conflicting legal authorities in Russia. |
|d. |Russia’s recent actions to gain state control of private firms’ assets. |

ANS: D PTS: 1 DIF: Hard REF: 253-256
OBJ: 08-07 TYPE: application 64. Terrorism creates an economic risk for firms which
|a. |reduces the amount of investment foreign companies will make in a country perceived to be terror-prone. |
|b. |is created by governmental bans on doing business with terrorist regimes. |
|c. |is offset by the above-average returns for firms which have learned how to operate in such an environment. |
|d. |is absorbed by firms which are highly geographically diversified and which operate in both secure and insecure |
| |locations. |

ANS: A PTS: 1 DIF: Easy REF: 254 | 256
OBJ: 08-07 TYPE: comprehension 65. Why do the Chinese violate Western companies' intellectual property rights?
|a. |The rapid pace of new technology creation in China renders patents obsolete. |
|b. |The collective nature of Chinese society does not promote individualistic rights. |
|c. |Western companies are viewed as enemies whose intellectual property should be exploited. |
|d. |The Chinese government actively promotes copyright and patent piracy. |

ANS: B PTS: 1 DIF: Medium REF: 255
OBJ: 08-07 TYPE: comprehension 66. A U.S. company that has developed a novel approach to curing a common eye disease is considering opening operations in India, a country in which there is a great need for this treatment. The treatment uses a proprietary combination of readily-available drugs and the price is moderate, but not low. The company can expect
|a. |to earn above-average returns in India because of the high need for the treatment. |
|b. |to have a difficult time earning above-average returns because Indian firms will probably copy the proprietary formula |
| |and sell the treatment at a lower price. |
|c. |to earn above-average returns because India is increasingly enforcing intellectual property rights for foreign firms, |
| |especially in the medical field where the country has great need. |
|d. |to earn below-average returns because India regulates the prices that can be charged for medical treatments and drugs so|
| |that these can be widely available to its population. |

ANS: B PTS: 1 DIF: Hard REF: 255
OBJ: 08-07 TYPE: application 67. The positive results associated with increasing international diversification have been shown to
|a. |continue as the level of international diversification increases. |
|b. |level off and become negative as diversification increases past some point. |
|c. |become negative quickly. |
|d. |be centered in only one or two industries. |

ANS: B PTS: 1 DIF: Medium REF: 256-257
OBJ: 08-08 TYPE: comprehension 68. Overseas Personal Security Services (OPSS) provides security and employee-tracking services for firms whose employees are traveling in or working in other countries. These services include bodyguards, chauffeurs trained in evasive maneuvers, and ransom insurance in countries with high levels of kidnapping. OPSS has grown rapidly and is highly profitable. OPSS is taking advantage of the:
|a. |inherent economic risks of international operations. |
|b. |inevitable culture clash between members of developed and emerging economies. |
|c. |lack of related and supporting industries in many emerging economies. |
|d. |threat of international terrorism. |

ANS: D PTS: 1 DIF: Easy REF: 255 | 256
OBJ: 08-07 TYPE: application 69. Intellectual property rights will be respected in China when
|a. |significant jail time is added to Chinese penalties for piracy. |
|b. |Western firms pirate Chinese intellectual property. |
|c. |Western companies aggressively sue Chinese pirates in Chinese courts. |
|d. |the Chinese see themselves as creators of intellectual property and understand the importance of protections. |

ANS: D PTS: 1 DIF: Medium REF: 255-257
OBJ: 08-07 TYPE: comprehension 70. Arkadelphia Polymers, Inc., earns 60% of its revenue from exports to Europe and Asia. The CEO of the company would be
|a. |concerned if the value of the dollar strengthened |
|b. |pleased if the value of the dollar strengthened. |
|c. |unconcerned about the fluctuation in the value of the dollar because the company is widely diversified geographically. |
|d. |likely to consider moving to international strategic alliances or acquisitions if the value of the dollar fell and |
| |remained low. |

ANS: A PTS: 1 DIF: Medium REF: 256
OBJ: 08-07 TYPE: application 71. All of the following complicate the implementation of an international diversification strategy EXCEPT
|a. |widespread multilingualism. |
|b. |increased costs of coordination between business units. |
|c. |cultural diversity. |
|d. |logistical costs. |

ANS: A PTS: 1 DIF: Easy REF: 257
OBJ: 08-08 TYPE: comprehension 72. Nature Dog, a California manufacturer of expensive organic dog foods and canine nutritional supplements is looking to expand internationally. It plans to use exporting as the first step into testing the international market for its products. The company would be best advised to target
|a. |the Chinese market because it is so large. |
|b. |the European market because it is culturally similar to the U.S. |
|c. |the Mexican market because it is so close. |
|d. |no international market. This is an example of a culturally-unique product. |

ANS: B PTS: 1 DIF: Hard REF: 257
OBJ: 08-08 TYPE: application 73. Rose Petal Cosmetics, a manufacturer of cosmetics and skin care products for women of color., wishes to expand to markets in Asia and the Mid-East, as well as areas of Europe with many African and Mid-Eastern immigrants. A major competence of Rose Petal is effective marketing to American women-of-color. Rose Petal’s main barrier to success in its target markets will probably be
|a. |technological. |
|b. |political. |
|c. |cultural. |
|d. |logistical. |

ANS: C PTS: 1 DIF: Medium REF: 257
OBJ: 08-08 TYPE: application

Similar Documents

Premium Essay

Human Resource Managment

...A human resources department has different and similar roles in throughout an organization. They have to make sure the company is meeting its goals and that everything is going effectively. They do the hiring and recruiting for the employer. Human resources department in health care could be similar but may have a few different roles. Human resources management deals more with personnel. They also have other professionals such as counselors to deal with other aspects in the department and in health care organizations. Human resources is essential to an organization for the fact of employees and just running the company and making sure everything runs smoothly from employees to work safety. The health care industry consists of many different organization, departments, and roles. The human resources department in the health care field may differ a bit between different types of organizations. According to RN Degrees (2011), in a hospital setting, the human resources department main role is to manage every aspect of operations that are personnel related. Some specific roles for human resources management in health care include: hiring, physician and nurse recruitment, employee orientation, personnel management, benefits management, counseling, claims handling, training, professional development programs, state and federal regulations education, workplace safety, labor mediation, and employee meetings or administration. Some of the roles are similar to other organizations, but...

Words: 766 - Pages: 4

Premium Essay

Human Resource Managment

...Human Resource Management Human resources represent the most important cost in many organizations. How effectively a company uses its human resources can have a dramatic effect on its ability to compete or survive in an increasingly competitive environment. HR policies can affect an organization’s competitive position by controlling costs, improving quality, and creating distinctive capabilities. This paper will discuss the functions and roles of human resource management in today’s healthcare industry. In any organization staff members are known as personnel or commonly referred to as human resources representatives. However, to acknowledge and describe how important each member is to the organization during the past couple of years the term human resources has been adopted. One of the main functions of a human resources manager is known as human resources strategy. This means that the main role or objective of the human resources manager is to ensure that the organization make the most of its workforce in a manner that will provide the organization with a competitive edge. The manager must also ensure that goals, required work, and services are rendered completely and in a timely fashion. Managers obtain more responsibilities, duties, and workload within the organization. They are required to step in and complete task when short staffed. All managers have the power to manage human resources, the human resources department’s role is to assist any manager who performs in the...

Words: 451 - Pages: 2

Premium Essay

Human Resource Managment

...[pic] THE LITTLE STAR KINDERGARTEN HUMAN RESOURCE MANAGEMENT CONTENT • INTRODUCTION • COMPANY PROFILES • DEFINATION • KEY FUNCTION • OBJECTIVE • HUMAN RESOURCE PROJECTION PLAN • 5 YEARS PLAN • JOB DESCRIPTION • TRAINING AND DEVELOPMENT • CONCLUSION Prepared by : YONG SIEK WOON ( JENY) ID: 128 INTRODUCTION Human Resources Management is a strategy that maximizes return on investment in the organization’s human capital and minimizes financial risk. This organize framework introduce to an organization the process of implementing and completing the functions of planning, organizing, staffing, directing and controlling in an efficient and effective manner to achieve the organization goals and objective. The main role of the Human Resource Department in The Little Star Kindergarten is to source and hire the qualified, experience, responsible teachers; to provide training and development; to motivate the employees; to prepare payroll and to maintain the optimum work force. COMPANY PROFILES The Little Star Kindergarten (TLSK) was established in Kajang in January 2011. The goal of the establishment of TLSK is to provide an overall early childhood educational programme that covers all the knowledge, skills, norms, values, cultural elements and beliefs that a child needs to help them to achieve the full development of their physical, mental and emotional growth. VISION ...

Words: 3023 - Pages: 13

Premium Essay

Human Resource Managment

...HND Business Unit Name: Human Resource Management Unit number: 21 QCF Level 04 Assessor: Mr. Assad Ullah Internal Verifier: Syed Kashif Shah Assessment Title: Traditional view of Personnel Management and the new approach of Human Resource Management Procedures and practices used for obtaining suitable employees Assessment Method: Assignment Assessing in: Individual Number of Words: 2500 words max Outcomes Covered: 1st and 2nd Issue date: February 05, 2014 Due Date: March 12, 2014 College No. | Learner Name | Learner Signature | | Mohammad Asim | | | | | Learner’s Declaration: I confirm that the work submitted for this assignment is my own. | Date | | Outcomes Covered Outcome | Description | 1 | Understand the difference between Personnel Management and Human Resource Management | 2 | Understand how to recruit employees | Table of Contents AC 1.1: Distinguish between personnel Management and human resource management. . . . . . . . . . . . . . . . 3 AC 1.2:Asses the function of human resource management in contributing to organizational purposes. …..5 AC 1.3:Evaluate the role and responsibilities of line Managers in human resource management………….10 AC 1.4:Analyze the impact of legal and regulatory framework on human resource management?..............12 AC 2.1: Identify reasons why organizations involve in Human Resource planning……………………… ...15 AC...

Words: 9688 - Pages: 39

Premium Essay

Human Resource Managment

...In contrast to ‘best practice’ or universalist, HRM is prescriptive approach to people management. There are a number of perspective on what constitutes best practice and whilst model tend to vary in their degree of prescription and their specific emphasis (for example, employee commitment, involvement in decision-making or the development of human capital), they tend to be based on the assumption that all firms, irrespective of competitive strategy and environment, will see performance improvement if they implement particular HR policies and practices in a strategic manner. DEFINITION: Best practice- Universalistic model of HRM which suggest that particular budles of HR practices can lead to improved individual and organisational performance, regardless of organisational characteristics and environmental factors. Alternatively, referred to as high- commitment HRM or high-performance work systems. COMPONENTS OF ‘BEST PRACTICE’/HIGH COMMITMENT HRM MAIN ASPECTS: ■ Employment security and internal labour markets ■ Selective hiring and sophisticated selection ■ Extensive training, learning and development ■ Employee involvement, information sharing and worker voice ■ Self-managed teams/teamworking ■ High compensation contingent on performance ■ Reduction of status differentials/harmonisation Best practice elements in the Mercury hotel * The Mercury hotel has used the involvement in decision making as they have departmental meeting every week and staff discuss the...

Words: 281 - Pages: 2

Premium Essay

Human Resource Managment

...Introduction The human resources of an organization consist of all people who perform its activities. Human resource management (HRM) is concerned with the personnel policies and managerial practices and systems that influence the workforce. In broader terms, all decisions that affect the workforce of the organization concern the HRM function. The activities involved in HRM function are pervasive throughout the organization. Line managers, typically spend more than 50 percent of their time for human resource activities such hiring, evaluating, disciplining, and scheduling employees. Human resource management specialists in the HRM department help organizations with all activities related to staffing and maintaining an effective workforce. Major HRM responsibilities include work design and job analysis, training and development, recruiting, compensation, team-building, performance management and appraisal, worker health and safety issues, as well as identifying or developing valid methods for selecting staff. HRM department provides the tools, data and processes that are used by line managers in their human resource management component of their job. What is the focus of HRM department? “The HRM focus should always be maintaining and, ideally, expanding the customer base while maintaining, and ideally, maximizing profit. HRM has a whole lot to do with this focus regardless of the size of the business, or the products or services you are trying to sell.”...

Words: 1108 - Pages: 5

Premium Essay

Human Resource Managment

...Alignment of HRM and Business Strategies HRM 530 Jernita Taylor Dr. Joe DiBenedetto Starbucks Coffee Company is a global coffeehouse chain that started in Seattle Washington in 1971. With revenues increasing every year since its opening year Starbucks began to publically trade in 1992. In this paper I will evaluate Starbucks Coffee Company’s Human Resource and business strategy by describing HR positions in Starbucks and the responsibilities listed for the HR Department. I will determine which HR position I would prefer while working for Starbucks with reasoning. I will analyze how Starbucks can establish HRM strategies to improve competitive advantages and Lastly, I will discuss three ways the company can continue to increase diversity. I. To ensure that the HR strategy is aligned with the business strategy Starbucks can ensure that employees hired know what the goals and growth strategies are for the company as a whole and on an individual store basis. One of Starbucks business strategies of 2015 is to be the employer of choice. Starbucks believes its company’ success lies a great deal with the people the company chooses to employ and it’s also important for the company as a brand to have a name that’s respected in the way it treats its employees. A survey conducted by Starbucks shows that 27% of the customers love the brand because of the way it treats its people. (Starbucks Press Release, 2015) Starbucks HR strategy since 2011 has been to hire people who are the very...

Words: 1132 - Pages: 5

Premium Essay

Human Resource Managment

...COMPERATIVE HUMAN RESOURCE MANAGEMENT ASSIGNMENT 1 INDIVIDUAL REPORT Module Leader: MOIRA CALVELEY Content * Introduction……………………………………………………………………..3 * Hofstede culture thoery…………………………………..……………….4 * Labour Laws……………………………………………………………………..7 * Trade Unions……….…………………………………………………………..8 * Conclusion……….………………………………………………………………9 * Reflection….…………………………………………………………………..10 * Appendix………………………………………………………………………12 * Reference…………………………………………………………………….15 Introduction Employees working in an organisation are the human resource of the organisation. It is the most important resource of the organisation. It is the most important resource out of the various resources that are available to the organisation. Human resource management includes everything from planning the human resource; recruiting and developing them through continuous training. It may also involve retrenching the workers if management feels it essential to achieve objectives. Managing resources is quite complex in many countries as their exist lot of disparities due to difference in cultures, educational background, income levels etc. According to Flippo, Hrm is the planning, organising, directing, and controlling of the procurement, development, compensation, integration, maintenance and reproduction of human resource to the end that individual, organisational and societal objectives are achieved. International human resource management...

Words: 3861 - Pages: 16

Premium Essay

Human Resources Managment Roles

...Human Resource Management Roles HCS/341 November 14, 2011 Human resources in its most basic form, refers to the people that work in any given organization (Gomez-Mejia, Balkin, & Cardy, 2010). The functions of human resources department in the health care industry have a lot of seminaries from any other industry. Their main goal is to achieve and direct the crew to successful direction. For this reason is important always have the desire to get and keep good people within the organization. The mission of human resource department is to strengthen the internal power of the company by recruitment and retain employees, training and development, performance management, offering them compensation and benefits and regulatory compliance. We all know that selecting the most qualified candidate for an open position can by a challenge, but it can more challenging to find a qualified, dedicated, and experience person to work in the health care industry. A good example of this is that in order to work in health care field the interview person must to possess a set skill to handle in a responsible way people’s health. For this reason Human Resources department should carefully evaluated and check the interview person to verify how qualify this person can be to have people’s life in their hands. (Hauff, 2007) Training and career development activities are designed to help an organization meet its skill requirements and to help its employees realize their maximum potential (Gomez-Mejia...

Words: 836 - Pages: 4

Premium Essay

Human Resources Managment Report

...Importance of Human Resources Management YOUR NAME HRMG 213 Sylvertooth 04/10/11 Abstract Managing human resources is a very important role in the modern workforce. From managing and training to compensation and benefits, the role carries a certain importance that all organizations must incorporate to be successful. It is clear to see that there is a large amount of responsibility and dependency that go along with this role. This role constantly evolves as time moves forth and new technology and trends are embraced. The human resources manager must be adaptive and understanding to be successful. The role is also very broad. Not only will the human resources manager be responsible for ensuring safety on the workplace but will also be responsible for administering discipline while attempting to minimize stress. What exactly is human resources management? Human resources management is the process of managing human talent to achieve an organization’s objectives (Bohlander & Snell, p. 4). Furthermore, it is the management of an organization and its assets. Why is human resources management so important to an organization? Staffing, designing jobs and teams, developing skillful employees, improving employee performance and approaches and rewarding success are all functions of an HR manager (Bohlander & Snell, p. 4). These are all important facets that an organization needs in order to be successful. Without a human resources department and the management...

Words: 1076 - Pages: 5

Premium Essay

Strategic-Human-Resource-Managment

................... 06 1. Apple Inc Information............................................................... 06 2. Apple Inc Human Resource Management................................. 06 3. Apple Inc Managing Employment Relationships...................... 08 4. Apple Inc Recruitment and Selection........................................ 10 IV. Hanoitourist Travel Company: SHRM…………………………... 12 IV. Conclusion……………………………………………………….. 13 IV. References...................................................................................... 14 There are many factors to create the success of companies and strategic human resource management is one of the most important one to make their companies stronger and more developed. First of all, human resource like workforce or employees is defined as the labor pool in employment; however it describes better about the role, skills, competencies and potential of employees. From the definition of Human resource, the term of human resource management is known as the way employees are recruited, organized, developed, appraised, motivated, and retained (1) . Additionally, strategic human resource is used as a new method of many companies to treat their employees. By this way, they approve the importance of human resource in the companies instead of machines or technologies. Hence, human resource is evaluated as the most valuable property of companies and their employees becomes the main...

Words: 3046 - Pages: 13

Premium Essay

Human Resource Managment Roles

...Human Resource Management Roles Kris A. Kilian HCS/341 March 26, 2012 Judith Burke Human Resource Management Roles The Human Resources (HR) department has a vital role in the industry of health car organizations. Working with each individual within the organization is imperative to help the entire organization accomplish the goals. When HR staffs an organization, HR must take an inventory based on supply and demand first to see where the correct amounts of people are needed in each department. Staffing departments has a process to make the challenge run smoothly. Finding the qualified applicants to fulfill each position can be time-consuming and challenging to make the organization productive with customer satisfaction. A job analyses should be taken to ensure the proper implementation of the prospective employee and the desired position. Retaining employees consists of good and open communication. An open door policy must be enforced to keep an honest flow of momentum throughout the organization for a sense of belonging and ease. Training consists of teaching an employee a new skill or assisting where there is an issue of the current work performance. When an organization foresees a new need for enriching a department, the developing process is in full effect for its employees and their abilities. Employee relations needs to always remain open to be followed by the rules and policies of the HR administration team and the organization. HR will conduct on a timely...

Words: 597 - Pages: 3

Premium Essay

Human Resources Managment Roles

...Human Resource Management Roles Andrew J Kunkel HCS 341 April 27th, 2015 Human Resource Management Roles Human resource managers are generally tasked with the administrative duties associated with managing employees. These duties can range from hiring and firing to assignment of benefits. In the healthcare industry a human resource manager will have additional task that are not necessarily unique to the health care industry, but possible looked at in a different manner. In this paper we will look at what those roles are, and why those roles are important. The health care industry is fast paced, constantly changing, and very demanding. Unlike other industries health care can truly be a life or death situation. This means that the staff of a health care facility must be, without question up to that task. This is where a human resources manager comes into the picture. Appropriately staffing, and managing those staff members is probably the most critical function of this position. At any given time in a health care facility an emergent situation could occur. Do to this fact the appropriate staff members must always be either working or available. Balancing the staffing requirements of the facility with the financial limitations of the facility is a time consuming and delicate task. A good human resources manager must understand the importance of this, and have the ability to complete his task. Another essential function of a human resources manager in a health care setting...

Words: 470 - Pages: 2

Premium Essay

Human Resource Managment Roles

...Human Resource Management Roles Human Resource Management (HRM) focuses on employing, running and developing individuals in an organization. Human resource managers have to develop a strategy for gaining and maintaining an edge against other competitors in the marketplace. It is there job to gain skilled individuals that will set the company above others. A human resource manager also needs to take care of employees concerns and well beaning in the company. If there is an individual that is unhappy about a situation then the individual can go to the human resource manager and voice their concerns without any ramifications or judgment. Human resource managers come across many different challenges. There are environmental, organizational and individual challenges. In environmental challenges there are rapid change, rise of internet, workforce diversity, globalization legislation, evolving work and family roles, skill shortage and the rise of the service sector (Gomez-Mejia, Balkin, & Cardy, 2010).A human resource manager needs to be skilled and equipped to overcome these challenges in any industry. Health care industries are no strangers to the challenges that the human resource manager may face. Healthcare industries grow rapidly and the human resource manager needs to keep up with the growth. They are the backbone to the company and hire the most effective workers from medical staff to non-medical staff. Human resources, when pertaining to health care, can be defined as...

Words: 717 - Pages: 3

Premium Essay

Human Resource vs People Managment

...organization is strongly bonded and the people working are recruited on merit based systems as well as for their skills. Like in an organization there are a lot of departments if we are to talk about the multinational or bigger this purpose a special unit is required which makes sure that they select the best possible employee for the organization and the organization gets the best man for the job. All of this is made possible by a department knows as “human resource management “. Personal management and human resource management are the departments that are used for a similar purpose and they almost work in a similar fashion, but human resource management is used more these days the main reason being that the structure of this department is much more solid as compared to the structure of personal management department. In the later pages we shall examine the differences and the reason that explains that why human resource management took over the personal management department as the time moved on. What is human resource management? Human...

Words: 1553 - Pages: 7