Chapter 11 Strategic International HRM

Question 1

What is domestic vs multi-domestic strategy?

Answer 1

1. Domestic strategy - internationalizing by exporting goods abroad as a means of seeking new markets (send products abroad and someone else sells it)
2. Multi-domestic strategy - a strategy that concentrates on the development of foreign markets by selling to foreign nationals (offices overseas - at least one person)

Question 2

What is multinational strategy?

Answer 2

standardizing the products and services around the world for efficiency

Question 3

What is global strategy?

Answer 3

Introduces culturally sensitive products in chosen countries with the least amount of cost - customizes the products

Question 4

What are the 3 approaches to adaptive IHRM?

Answer 4

1. Adaptive IHRM approach
   - HRM systems that will be consistent with the local economic, political, and legal environment
2. Exportive IHRM approach
   - transferring home HRM systems to foreign subsidiaries without modifying or adapting to local environment
3. Integrative IHRM approach
   - combining home HR practices with local practices and selecting the most qualified people for the appropriate positions no matter where these candidates come from

Question 5

What are home-country nationals?

Answer 5

Individuals from the subsidiary country who know the foreign environment well (locals, it’s their home)

Question 6

What are parent-country nationals?

Answer 6

Individuals from headquarters who are highly familiar with the firm’s products and services, as well as with the corporate culture.

Question 7

What are Third-country nationals (TCNs)?

Answer 7

Individuals from a third country who have intensive international experience and know the corporate culture from previous working experience with corporate branches in the third country.