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Following the acquisition of an international firm, the parent company plans to
maintain and emphasize its prevailing culture, with the expectation that employees
from the acquired firm will conform to the parent company's established way of doing
things. Which acculturation outcome is the parent company implementing? Answer-
Assimilation
Why should a company conduct due diligence prior to finalizing a merger
agreement? Answer- To identify potential risks associated with the unification
process
What is the dominant form of organizational combination among U.S. companies that
seek to enter new markets overseas? Answer- Joint ventures
A company in the United States is considering a joint venture with a company in
Asia. International human resources (IHR) is supporting the leadership team in the
selection process for the leader of this partnership. The U.S. company is conscious
of the risks of failures in joint ventures. After two rounds of selection interviews and
an assessment of business and management capabilities, two candidates are left to
consider. Which trait should the leadership team and IHR require for the candidate
they select? Answer- Relation-building skills
A U.S. company looking to expand its business operations overseas decides to
acquire a British firm, a decision it sees as the most effective and fastest way to
develop a presence in the U.K. market. The international human resources manager
(IHRM) is helping the company leadership team develop pre-acquisition human
resources (HR) management objectives that will promote the value of both
companies' HR knowledge, experience, and capabilities. The IHRM has been asked
to advise the team on which leadership style works best to achieve this outcome.
Which leadership style should the IHRM recommend? Answer- Participative
Two food companies realize that their product lines are complimentary and decide
they can benefit by working together. The benefits include decreased transportation
costs, joint marketing, and discounts on technology purchases. Neither company will
buy out the other. Which type of agreement are these companies entering into?
Answer- Non-equity based co-marketing arrangement
, Two oil companies are merging, and as part of the early stages of due diligence, a
human resources (HR) team is sent to both companies to interview employees. What
are the types of hidden or undisclosed issues the team should be looking to
uncover? Answer- Pending lawsuits, executive scandals, secret executive promises,
and potential threats of unionization
Two parent companies allow their respective subsidiaries to provide small business
loans in India to up-and-coming technology firms. To successfully operate, they
create a new legal entity that allows them to work together. Which type of agreement
should they use? Answer- International joint venture
A multinational enterprise (MNE) recently acquired a small company in another
country. Both organizations have continued to function the same as before the
acquisition, with minor changes to human resources (HR) policies and procedures.
Which integration approach is this? Answer- Portfolio
An Ecuadorian meat producer and a U.S. logistics company create a separate
organization that provides both U.S. and Latin American consumers with quality
meat products sold at local food pantries. Which type of international arrangement is
this? Answer- Joint venture
The head of Human Resources (HR) for a transnational company is discussing post-
merger alignment with two European companies. A key area of interest is to drive
the targeted development of all its employees through mandatory career paths using
defined development steps. Which position is legally defendable? Answer- Before
career and development steps become mandatory, it needs the approval of
employees or their representatives.
Throughout its global operations, a fast-food company allows its restaurants to
modify some menu selections based on local preferences. Which type of
acculturation approach does this company follow? Answer- Blending
The Human Resources (HR) team of a multinational enterprise (MNE) is developing
a handbook to help leaders manage employee relations and minimize liabilities
throughout its diverse global operations. What should be emphasized in the
handbook? Answer- Every country is different
Two firms are undergoing a merger. The head of Human Resources (HR) compares
and harmonizes the HR policies and procedures between the two original firms to
avoid discrepancies in the practices of the newly created company. As a result, the
head of HR creates one new set of HR policies and procedures for the new company
aligned with applicable employment laws and labor standards. Which stage of the
process does this represent? Answer- Combination and integration
An expatriate manager from Denmark is frustrated when the local country engineer
in Guatemala repeatedly asks a number of clarifying questions and asks for specific
guidance and details to accomplish an assigned task. The manager responds with,
"You will be able to figure it out," which only creates more confusion for the engineer.