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The Foreign Corruption Practices Act was initiated by Wal-Mart underpaying child laborers in Honduras

The Foreign Corruption Practices Act was initiated by:

A) Wal-Mart underpaying child laborers in Honduras.

B) Nike bribing the Indonesian government.

C) a U.S. firm bribing the Honduran government.

D) a Chinese firm complaining about toxic batteries.


Case 17.1

Hollar, Inc. is a U.S.-based, international car manufacturer with assembly facilities in 12 countries. Currently, expatriate managers and local national managers are hired and promoted according to the direction of the home office. Hollar has a strategic alliance with a large African ship building company in order to move into that market. Hollar recently purchased Tyro, a firm based in France that makes automobile components. Tyro's production facilities are located in France, but the firm has dealerships and customers throughout Europe.


Hollar plans to open a new plant in India within the next four years. Some of Hollar's top executives advocate using expatriates to oversee the construction of the new facility. Another group of Hollar executives assert that host-country nationals should manage the project.


82) Refer to Case 17.1. In which stage of internationalization is Hollar, Inc.?

A) Stage 2

B) Stage 3

C) Stage 4

D) Stage 5


83) Refer to Case 17.1. Prior to being purchased by Hollar, Tyro was most likely in which stage of internationalization?

A) Stage 1

B) Stage 2

C) Stage 3

D) Stage 4

84) Refer to Case 17.1. Which of the following best supports the decision to fill management positions in India with expatriates?

A) Hollar desires a greater understanding of local conditions and customs.

B) Hollar needs to ensure a smooth transfer of business and management practices.

C) Hollar wants to reduce the firm's compensation costs related to constuction of the plant.

D) Hollar's most globally skilled managers are part of dual-career couples with small children.


85) Refer to Case 17.1. Which of the following questions is LEAST relevant to the decision to fill management positions in India with expatriates or host-country nationals?

A) What is the turnover rate for repatriated Hollar employees?

B) What is the international health and safety record at Hollar?

C) How important is it for Hollar to earn community acceptance?

D) What relocation and salary costs would be incurred by Hollar?


86) Refer to Case 17.1. Which of the following best supports the decision to fill management positions in India with host-country nationals?

A) Hollar wants to exhibit trust in the local citizenry.

B) Hollar wants to maintain significant control from headquarters.

C) Hollar anticipates extensive government intervention.

D) Hollar's domestic and foreign operations are highly interdependent.

Case 17.2

Golden Rod is an electronics firm based in Detroit with subsidiaries in several countries including Indonesia, Egypt, Argentina, and Thailand. The top management positions in these subsidiaries are filled by U.S. citizens. Golden Rod is planning on creating a new expatriate assignment in Egypt. The firm has created a selection board of expatriates to choose the best person for the job. In the past, Golden Rod has experienced a high turnover rate among repatriated managers, so executives hope to solve this problem.


87) Refer to Case 17.2. Which of the following best explains the firm's high turnover rate among repatriated managers?

A) Poor planning for new career assignments

B) Spouses and family suffering from culture shock

C) Inadequate compensation for cost-of-living expenses

D) Co-workers displaying a lack of cultural sensitivity


88) Refer to Case 17.2. It would be most effective for the selection board to:

A) choose someone who has had previous international experience.

B) screen applicants but not their families.

C) use technical ability as the most important qualifying criterion.

D) never choose a foreign-born employee to serve as an expatriate.


89) Refer to Case 17.2. Golden Rod seems to use which of the following approaches to manage international subsidiaries?

A) The geocentric approach

B) The polycentric approach

C) The ethnocentric approach

D) The intranational approach

90) Refer to Case 17.2. Golden Rod chooses a woman named Chyna for the expatriate position in Egypt. Which of the following actions would LEAST likely solve reintegration problems for Chyna when she returns to the U.S. after the assignment?

A) Management should sit down with Chyna and lay out a potential career path before she goes abroad.

B) Golden Rod should provide a mentor for Chyna with whom she can communicate during her assignment.

C) Communication channels should be maintained between Chyna's home office and her office in Egypt.

D) Chyna's contributions need to be recognized by the local Egyptian community before she returns to the U.S.


91) Refer to Case 17.2. In order to increase the likelihood of Chyna's success in Eygpt, Golden Rod should most likely:

A) make sure her position in Eygpt is slightly lower than her position at home.

B) not provide her with cross-cultural training to prevent establishing stereotypes.

C) spend more time on developing her technical abilities than her cross-cultural sensitivity.

D) make sure that this assignment will be a stepping stone for her advancement in the company.

Mar 13 2020 View more View Less

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