Global HRM Exam 1 UPDATED Questions
And CORRECT Answers
International Human Resource Management - CORRECT ANSWER - The study and
application of all human resource management activities as they impact the process of
management human resources in enterprises in the global environment.
Trade Agreements - CORRECT ANSWER - Decreased barriers and open markets have
resulted in fast growing economies through out the world. Local and national governments
support and encourage growing cross-border and foreign investment.
E Commerce - CORRECT ANSWER - The World Wide Web gives the ability to conduct
business virtually. Business that have a website that can be reached to anyone anywhere is
considered global.
Homogenization of Culture and Consumer Demands - CORRECT ANSWER - Integration
of cultures and values have led to consumer demands for some types of products and services.
Firms operating internationally need to be sensitive to these local differences.
Internationalization - CORRECT ANSWER - The process of planning and implementing
products and services so that they can be easily adapted to specific local languages and cultures,
a process called localization.
Globalization - CORRECT ANSWER - A process of interaction and integration among the
people, companies, and governments of different nation, a process driven by international trade
and investment aided by information technology.
Headquarters of Multinationals - CORRECT ANSWER - HRM professionals work in
central or regional headquarters of traditional headquarters of the traditional multinational
enterprises. (most common for HR managers) They use parent company policies and practices.
Subsidiaries - CORRECT ANSWER - A company owned by a holding company.
, Foreign Owned Firms - CORRECT ANSWER - The complete or majority
ownership/control of a business or resource in a country by individuals that are not citizens of
that country, or by companies whose headquarters.
Domestic Firms - CORRECT ANSWER - Hiring or recruiting of immigrants or
establishing small offices in other countries or recruit talent "overseas" in order to meet needs for
specialized skills.
Non Governmental Organization (NGOs) - CORRECT ANSWER - An organization that
is neither a part of a government nor a conventional for-profit business. Usually set up by
ordinary citizens, NGOs may be funded by governments, foundations, businesses, or private
persons.
Strategic International HRM (SIHRM) - CORRECT ANSWER - Creating and
implementing IHRM policies and practices that help achieve an MNE's international strategy.
(Used in ideal situations)
Internalization Process and Methods for Market Entry within the Five Stages. Stage 1: -
CORRECT ANSWER - Exporting and Portfolio Investment. Firms may decide to make
finical investments in foreign firms. And may begin to export products or services to foreign
markets through direct sales or foreign distributors.
Internalization Process and Methods for Market Entry within the Five Stages. Stage 2: -
CORRECT ANSWER - Sales subsidiary/Local Sales Office. Assign responsibility for
international sales to a sales managers or and purchasing agent.
Internalization Process and Methods for Market Entry within the Five Stages. Stage 3: -
CORRECT ANSWER - Licensing, Franchising, Contracting/Sub-contracting.
Internalization Process and Methods for Market Entry within the Five Stages. Stage 4: -
CORRECT ANSWER - Wholly owned subsidiaries (Greenfield-build subsidiaries from
scratch or Brownfield-buying existing facilities) Maquiladora (twin plants (one in Mexico one in
U.S)).
And CORRECT Answers
International Human Resource Management - CORRECT ANSWER - The study and
application of all human resource management activities as they impact the process of
management human resources in enterprises in the global environment.
Trade Agreements - CORRECT ANSWER - Decreased barriers and open markets have
resulted in fast growing economies through out the world. Local and national governments
support and encourage growing cross-border and foreign investment.
E Commerce - CORRECT ANSWER - The World Wide Web gives the ability to conduct
business virtually. Business that have a website that can be reached to anyone anywhere is
considered global.
Homogenization of Culture and Consumer Demands - CORRECT ANSWER - Integration
of cultures and values have led to consumer demands for some types of products and services.
Firms operating internationally need to be sensitive to these local differences.
Internationalization - CORRECT ANSWER - The process of planning and implementing
products and services so that they can be easily adapted to specific local languages and cultures,
a process called localization.
Globalization - CORRECT ANSWER - A process of interaction and integration among the
people, companies, and governments of different nation, a process driven by international trade
and investment aided by information technology.
Headquarters of Multinationals - CORRECT ANSWER - HRM professionals work in
central or regional headquarters of traditional headquarters of the traditional multinational
enterprises. (most common for HR managers) They use parent company policies and practices.
Subsidiaries - CORRECT ANSWER - A company owned by a holding company.
, Foreign Owned Firms - CORRECT ANSWER - The complete or majority
ownership/control of a business or resource in a country by individuals that are not citizens of
that country, or by companies whose headquarters.
Domestic Firms - CORRECT ANSWER - Hiring or recruiting of immigrants or
establishing small offices in other countries or recruit talent "overseas" in order to meet needs for
specialized skills.
Non Governmental Organization (NGOs) - CORRECT ANSWER - An organization that
is neither a part of a government nor a conventional for-profit business. Usually set up by
ordinary citizens, NGOs may be funded by governments, foundations, businesses, or private
persons.
Strategic International HRM (SIHRM) - CORRECT ANSWER - Creating and
implementing IHRM policies and practices that help achieve an MNE's international strategy.
(Used in ideal situations)
Internalization Process and Methods for Market Entry within the Five Stages. Stage 1: -
CORRECT ANSWER - Exporting and Portfolio Investment. Firms may decide to make
finical investments in foreign firms. And may begin to export products or services to foreign
markets through direct sales or foreign distributors.
Internalization Process and Methods for Market Entry within the Five Stages. Stage 2: -
CORRECT ANSWER - Sales subsidiary/Local Sales Office. Assign responsibility for
international sales to a sales managers or and purchasing agent.
Internalization Process and Methods for Market Entry within the Five Stages. Stage 3: -
CORRECT ANSWER - Licensing, Franchising, Contracting/Sub-contracting.
Internalization Process and Methods for Market Entry within the Five Stages. Stage 4: -
CORRECT ANSWER - Wholly owned subsidiaries (Greenfield-build subsidiaries from
scratch or Brownfield-buying existing facilities) Maquiladora (twin plants (one in Mexico one in
U.S)).
