Global HRM Exam 1 UPDATED ACTUAL
Questions And CORRECT Answers
International HR Management - CORRECT ANSWER - The study and application of all
HRM activities as they impact the process of managing human resources in enterprises in the
global environment
What do trade agreements do? - CORRECT ANSWER - Decrease trade barriers, open
national markets to foreign trade, and create faster growing economies throughout the world
Bilateral trade agreements - CORRECT ANSWER - an agreement that affects only the
two parties that make it that promotes trade and commerce
Where is the center of global trade is moving from? - CORRECT ANSWER - West to East
Low Cost Sourcing - CORRECT ANSWER - Procurement strategy in which companies
source materials from countries with lower labour and production costs in order to cut operating
expenses
Economy of scale - CORRECT ANSWER - A proportionate saving in costs gained by an
increased level of production
Total estimated worldwide contribution of internet - CORRECT ANSWER - $1.67 trillion
Internationalization and Globalization - CORRECT ANSWER - Both terms refer to the
ever-increasing interaction, interconnectedness, and integration of people, companies, cultures,
and countries
Internationalization - CORRECT ANSWER - The practice of designing products, services
and internal operations to facilitate expansion into international markets
, Globalization - CORRECT ANSWER - The processes by which a company brings its
business to the rest of the world
UN Conference on Trade and Development (UNCTAD) - CORRECT ANSWER -A
structure established in 1964 to promote third world development through various trade
proposals
Transitional Corporation (TNC) - CORRECT ANSWER - An enterprise that is involved
with the international production of goods or services, foreign investments, or income and asset
management in more than one country
Transitional Index (TNI) - CORRECT ANSWER - Developed bvy UNCTAD, bsed on the
composite of a firm's average of its foreign assets, foreign sales, and foreign employment to its
total assets, sales, and employment, which identifies the relative importance of foreign business
activity to the world's largest firms
Home Country Subsidiaries of Foreign-Owned Firms - CORRECT ANSWER - HR
managers works in their home country but are employed by a local subsidary of a foreign multi
national enterprise
Domestic Firms/Domestic Multinationals - CORRECT ANSWER - Confront many
complexities of international business particularly as they relate to HRM
What are the two largest HR professional associations? - CORRECT ANSWER -
Chartered Institute for Personnel and Development (UK), Society for HR Management "SHRM"
(US)
What was a turning point in the professionalization of IHRM? - CORRECT ANSWER -
The est. of Global Professional in HR (GPHR) certification by HR Certfification Institute
(HRCI) in 2003
Green Field Project - CORRECT ANSWER - Involves acquiring an open field in order to
build subsidary from scratch
Questions And CORRECT Answers
International HR Management - CORRECT ANSWER - The study and application of all
HRM activities as they impact the process of managing human resources in enterprises in the
global environment
What do trade agreements do? - CORRECT ANSWER - Decrease trade barriers, open
national markets to foreign trade, and create faster growing economies throughout the world
Bilateral trade agreements - CORRECT ANSWER - an agreement that affects only the
two parties that make it that promotes trade and commerce
Where is the center of global trade is moving from? - CORRECT ANSWER - West to East
Low Cost Sourcing - CORRECT ANSWER - Procurement strategy in which companies
source materials from countries with lower labour and production costs in order to cut operating
expenses
Economy of scale - CORRECT ANSWER - A proportionate saving in costs gained by an
increased level of production
Total estimated worldwide contribution of internet - CORRECT ANSWER - $1.67 trillion
Internationalization and Globalization - CORRECT ANSWER - Both terms refer to the
ever-increasing interaction, interconnectedness, and integration of people, companies, cultures,
and countries
Internationalization - CORRECT ANSWER - The practice of designing products, services
and internal operations to facilitate expansion into international markets
, Globalization - CORRECT ANSWER - The processes by which a company brings its
business to the rest of the world
UN Conference on Trade and Development (UNCTAD) - CORRECT ANSWER -A
structure established in 1964 to promote third world development through various trade
proposals
Transitional Corporation (TNC) - CORRECT ANSWER - An enterprise that is involved
with the international production of goods or services, foreign investments, or income and asset
management in more than one country
Transitional Index (TNI) - CORRECT ANSWER - Developed bvy UNCTAD, bsed on the
composite of a firm's average of its foreign assets, foreign sales, and foreign employment to its
total assets, sales, and employment, which identifies the relative importance of foreign business
activity to the world's largest firms
Home Country Subsidiaries of Foreign-Owned Firms - CORRECT ANSWER - HR
managers works in their home country but are employed by a local subsidary of a foreign multi
national enterprise
Domestic Firms/Domestic Multinationals - CORRECT ANSWER - Confront many
complexities of international business particularly as they relate to HRM
What are the two largest HR professional associations? - CORRECT ANSWER -
Chartered Institute for Personnel and Development (UK), Society for HR Management "SHRM"
(US)
What was a turning point in the professionalization of IHRM? - CORRECT ANSWER -
The est. of Global Professional in HR (GPHR) certification by HR Certfification Institute
(HRCI) in 2003
Green Field Project - CORRECT ANSWER - Involves acquiring an open field in order to
build subsidary from scratch
