21. Companies become international in scope when they build facilities in a number of different countries, attempting to capitalize on lower production and distribution costs in different locations.
22. The HRM problems multinational companies face are completely different from those faced by international companies.
23. Multinational companies are increasingly employing inpatriates, increasing the need for cross-cultural training.
24. Transnational process refers to the extent to which the firm's planning and decision-making process includes representatives and ideas from a variety of cultures.
25. Global participation does not necessarily ensure that each country is providing managers to the company's ranks. This problem refers to transnational process.
26. The perception dimension refers to the skills that enable a manager to maintain a positive self-image and psychological well-being.
27. Allowances are often offered to make the expatriate assignment more attractive.
Multiple Choice Questions
28. All of the following are trends that have led to global market expansion,
except
A. the current geo-political climate fosters tourism and foreign investment.
B. expansion opens up new markets and larger numbers of potential customers.
C. many companies are building production facilities in other countries as a means of capitalizing on lower labor costs.
D. there has been a rapid increase in telecommunications and information technology.
Companies are attempting to gain a competitive advantage, which can be provided by international expansion in a number of ways. First, these countries are new markets with large numbers of potential customers. Second, many companies are building production facilities in other countries as a means of capitalizing on those countries' lower labor costs for relatively unskilled jobs. Third, the rapid increase in telecommunications and information technology enables work to be done more rapidly, efficiently, and effectively around the globe.
29. Which one of the following is
not
true of the European Economic Community?
A. Most, but not all, of the European nations have agreed to engage in free trade with one another.
B. Commerce is regulated by an overseeing body called the World Trade Organization.
C. Its overseeing body is the European Commission.
D. Members share a common currency, the euro.
Commerce is regulated by an overseeing body called the European Commission (EC).
30. Which one of the following countries is
not
a NAFTA member?
A. Canada
B. Chile
C. Mexico
D. United States
The North American Free Trade Agreement is an agreement among Canada, the United States, and Mexico.