Chapter 15: International Human Resources Management

Question 1

Analyzing International Environment

Answer 1

• Political Factors
• Economic Factors
• Sociocultural Factors
• Technological Factors

Question 2

Economic Factors

Answer 2

• Currency fluctuations
• Economic forecasts
• Trade cycles

Question 3

Technological

Answer 3

• Information systems
• Intellectual property
• Production technology

Question 4

Sociocultural

Answer 4

• National culture
• Human Rights
• Population demographics

Question 5

Political

Answer 5

• Political stability
• Country laws
• Property rights

Question 6

International Corporation

Answer 6

Domestic firm that uses its existing capabilities to
penetrate overseas markets

Question 7

Multidomestic Corporation

Answer 7

Firm with independent business units operating in
multiple countries

Question 8

Global Corporation

Answer 8

Firm that has integrated worldwide operations through a centralized home office

Question 9

Transnational Corporation

Answer 9

Firm that attempts to balance local responsiveness and global scale via a network of specialized operating units

Question 10

Staffing Internationally

Answer 10

• Expats
• Host-country nationals
• Third-country nationals

Question 11

Expatriates

Answer 11

Employees from the home country who are on
international assignment

Question 12

Host-Country Nationals

Answer 12

Employees who are natives of the host country

Question 13

Third-Country Nationals

Answer 13

Employees who are natives of a country other than the home country or the host country

Question 14

Major benefits of sending expats on shorter project-based assignments and hiring host-country nationals

Answer 14

– Hiring locals is generally less expensive than relocating expats.
– Because local governments usually want good jobs for their citizens, foreign employers may be required to hire locally.
– Most customers want to do business with companies (and people) they perceive to be local versus foreign

Question 15

What do you need to recruit internationally?

Answer 15

• Work permit or visa
• Guest workers
• Apprenticeships
• Transnational teams

Question 16

Work permit

Answer 16

– document issued by a government granting authority to a
foreign individual to seek employment in that country

Question 17

Guest workers

Answer 17

– Foreign workers invited to perform needed labour

Question 18

Transnational teams

Answer 18

Teams composed of members of multiple nationalities working on projects that span multiple countries

Question 19

To better understand local market

Answer 19

• Get to know universities and schools
• Develop networks in private and government communities
• Adulting phase

Question 20

Essential’s to work internationally

Answer 20

• Language training
• Cultural training
• Assessing and tracking career development
• Managing personal and family life
• Repatriation

Question 21

Compensation general rule for International HR

Answer 21

• Match the rewards to the value of the local culture
• Create a pay plan that supports the overall strategic intent of the organization but provides enough flexibility to customize particular policies and programs to meet the needs of employees in specific locations

Question 22

Compensation of Host-Country Employees

Answer 22

GLOBAL COMPENSATION SYSTEM
- A centralized pay system whereby host-country employees are offered a full range of training programs, benefits, and pay comparable with a firm’s domestic employees but adjusted for local differences

Question 23

International Differences in Unions Worldwide

Answer 23

• The level at which bargaining takes place
  (national, industry, or workplace)
• The degree of centralization of union-management
  relations
• The scope of bargaining (parties and issues)
• The degree to which government intervenes
• The degree of unionization and union strength
• The political affiliations of unions