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Which agreement was adopted by Canada, Mexico, and the United States to encourage trade between the three countries?


A) CSN
B) NAFTA
C) PICTA
D) APEC
E) TAFTA

F) A) and C)
G) C) and E)

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A country's political system does not usually affect human resource management.

A) True
B) False

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Identify a true statement about employee benefits.


A) In both the United States and Europe, the awarding of stock options is linked to specific performance goals.
B) Pension plans are more widespread in the United States and Japan than in Western Europe.
C) Unlike in the United States, compensation plans in other countries are less likely to include benefits.
D) Paid vacation tends to be more generous in Western Europe than in the United States.
E) Although stock options became a common form of incentive pay in Europe during the 1990s, American businesses did not begin to adopt them until the end of that decade.

F) None of the above
G) B) and C)

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While training and developing a global workforce, what is a challenge that an organization is most likely to face?


A) creating a comprehensive training program for employees from different cultures
B) making employees aware of the training content and the method of evaluation
C) linking training objectives to performance management
D) making employees aware of the development plans
E) deciding the duration of the training program

F) C) and E)
G) D) and E)

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In Ireland, the pay structure includes high pay for managers relative to nonmanagement employees. Which statement best explains the wide pay difference in Ireland?


A) Market structures are consistent across countries.
B) Ireland does not have good recruiting systems for identifying talented managers.
C) Irish managers tend not to be loyal, so companies are constantly replacing them.
D) Multinational companies have been leaving Ireland because of falling demand.
E) The demand for managers with technical expertise has been outstripping the supply.

F) A) and C)
G) C) and D)

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Describe the terms parent country, host country, and third country.

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When organizations operate globally, the...

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How do international, multinational, and global organizations differ from each other? Briefly summarize the HR issues associated with each type of organization.

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An organization that sets up one or a fe...

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Expatriates are employees from a country other than the parent country or the host country.

A) True
B) False

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Grant, an employee of Reiker Co., an American company, was sent to Turkey for an assignment. HR specialists at Reiker Co. have been preparing Grant for his return to the United States after three years. Which term describes the process being undertaken by the HR team at Reiker Co.?


A) cross-cultural preparation
B) time orientation
C) repatriation
D) uncertainty avoidance
E) culture shock

F) A) and D)
G) A) and E)

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Morgan, a consultant, was assigned to an overseas project in China for a period of two years. After only seven months, Morgan's manager decides to bring Morgan back to the home country and replace him with someone else in China. Which statement, if true, is most likely to have caused this decision?


A) Morgan exhibited the ability to effectively communicate in Mandarin.
B) Morgan exhibited a sense of intolerance toward collectivist ideals.
C) Morgan exhibited high levels of extroversion that were required for the job.
D) Morgan exhibited high levels of cohesiveness.
E) Morgan exhibited lower levels of disillusionment than other employees.

F) A) and D)
G) B) and E)

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Identify an advantage of having wide latitude in reducing a company workforce.


A) It gives employers the option of hiring for peak needs and laying off employees if needs decline.
B) It helps in protecting workers' jobs.
C) It helps employees adjust to a new culture.
D) It allows workers to keep more of their earnings regardless of the taxes they pay.
E) It gives employees the advantage of accumulating many years of work experience in an organization.

F) C) and D)
G) A) and E)

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Dwight, Dane & Associates, a consulting firm with offices in seven countries, is bringing together employees from all locations for a leadership training event. Which consideration is most affected by the international nature of the workforce?


A) the need to measure training outcomes
B) the need to have training objectives
C) management's interest in the topic
D) the employees' motivation level
E) cultural differences

F) All of the above
G) A) and C)

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Agger Inc. is opening an overseas office for the first time and is sending its best sales manager to oversee the start-up for two years. Zac, Agger Inc.'s human resource manager, is preparing cross-cultural training for the sales manager. A colleague suggests to Zac that he include the manager's spouse in the training. Should Zac follow the advice of his colleague?


A) No, train only the employee because the employee is the only one going on the assignment.
B) No, train only the employee because including the spouse adds to costs but not benefits.
C) Yes, the spouse should be included because not doing so could be seen as sex discrimination.
D) Yes, the spouse should be included because doing so shows that the company values diversity.
E) Yes, the spouse should be included because the family's adjustment affects the success of an assignment.

F) A) and B)
G) None of the above

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Cross-cultural training requires developing a greater awareness of one's own culture, too.

A) True
B) False

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In countries with large power distances, people address one another with first names.

A) True
B) False

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Appropriate behavior in Ghana includes


A) touching foreheads as a sign of greeting.
B) dramatic displays of loyalty only when it suits the individual.
C) disobedience of government-suggested regulations and procedures.
D) the length of eye contact.
E) repaying obligations.

F) A) and D)
G) A) and C)

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A&P Inc. is setting up production and distribution facilities in Mexico to meet the growing demand there. The company's executives want the human resource department to identify one of its U.S. managers to lead the operations there, so he or she can ensure that the company culture is maintained. They ask the HR vice president to recommend a person with strong financial skills. The HR vice president agrees but adds that they also should use psychological testing to identify candidates who are highly flexible and conscientious. Which statement best supports the HR vice president's advice?


A) These traits will replace the need for support from family members.
B) These traits will help the manager be extroverted in the new environment.
C) These traits are associated with a high degree of financial skills.
D) These traits will prevent the manager from noticing cultural differences.
E) These traits will help the manager persevere through culture shock.

F) C) and D)
G) B) and E)

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Pablo, an American who works for a U.S.-based company, has been sent to England for a work assignment. Pablo would be known as a(n)


A) expatriate.
B) repatriate.
C) host-country national.
D) third-country national.
E) guest-country national.

F) None of the above
G) All of the above

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High uncertainty avoidance refers to a strong cultural preference for structured situations.

A) True
B) False

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What is the most likely reason for hiring host-country nationals to fill most of a company's foreign positions?


A) They are familiar with the parent-country's customs.
B) They can easily understand the values of the local workforce.
C) They cost more to train, showing the company invests in its workers.
D) The company will not be required to transport the employee's spouse.
E) These employees are far more open to taking on new job responsibilities.

F) C) and D)
G) A) and B)

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