Chapter 16 - Global Human Resource Management

Question 1

Define “Multinational Enterprise (MNE)”.

Answer 1

-An organization that has facilities and other assets in at least one other country than its home country.
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Question 2

Define “Ethnocentric”.

Answer 2

-A strong emphasis on home-country practices.

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Question 3

Define “Polycentric”.

Answer 3

-A strong emphasis on each country as a unique environment.

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Question 4

Define “Regiocentric”.

Answer 4

-Countries are considered as aggregates within a region.

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Question 5

Define “Geocentric”.

Answer 5

-An emphasis on utilizing the best ideas and practices from anywhere in the world.
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Question 6

Define “Importing and Exporting”.

Answer 6

-Buying and selling goods and services outside the home country.
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Question 7

Define “Licensing Agreement”.

Answer 7

-Organization sells the right to its products or trademarks to producers.
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Question 8

Define “Franchising”.

Answer 8

-Granting the right to use its business model and brand.

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Question 9

Define “Piggyback”.

Answer 9

Arrangements when an organization partners with another firm that sells complementary products or services.
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Question 10

Define “Joint Ventures”.

Answer 10

-Two or more partners who share ownership and risk in the investment.
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Question 11

Define “Merger”.

Answer 11

-Two companies that combine their businesses together to create a new business entity.
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Question 12

Define “Acquisition”.

Answer 12

-One company being bought by another, which typically results in the acquired company being folded into the acquirer’s business.
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Question 13

Define “Foreign Direct Investment”.

Answer 13

-When a company takes a controlling ownership interest in a business in another country.
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Question 14

Define “Outsourcing”.

Answer 14

-Transferring the management and performance of a business function to an external service provider.
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Question 15

Define “Offshoring”.

Answer 15

-A company’s relocation of a business process or operation from one country to another.
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Question 16

Define “Culture”.

Answer 16

-Shared mind-set of a group of people that distinguishes them from others.
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Question 17

Define “Expatriate”.

Answer 17

-A citizen of one country who is working in a second country and employed by an organization headquartered in the first country.
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Question 18

Define “Repatriation”.

Answer 18

-Returning the expatriate to the home country.

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Question 19

Define “Host-Country National”.

Answer 19

-An employee working in their home country for a firm that is headquartered in a different country.
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Question 20

Define “Third-Country National”.

Answer 20

-A citizen of one country who is working in a second country for an organization that is headquartered in a third country.
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Question 21

Define “Reshoring”.

Answer 21

-Firms bring jobs that had been offshored back to the home country.
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Question 22

Define “Home-Country-Based-Approach”.

Answer 22

-Maintain the standard of living the expatriate had in the home country.
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Question 23

Define “Host-Country-Based-Approach”.

Answer 23

-Compensates the expatriate at the same level as workers from the host country.
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Question 24

Define “Codetermination”.

Answer 24

-Union or worker representatives are given positions on a company’s board of directors.
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