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Flashcards in Chapter 11 Deck (43)
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What is an international organization?

Firm using existing capabilities to expand into foreign markets


What is a multinational corporation?

Subsidiaries operating as fully autonomous units in different countries.


What is a global corporation?

Many subsidiaries but control stays in home office, view the world market as a unified whole.


What is a transnational corporation?

Specialized facilities positioned around the world, autonomy to different country operations but brings all separate activities together as an integrated whole.


What are the 3 factors that need to be considered in international HRM and explain them.

- economic: trade agreements affect jobs around the world
- political-legal: poorly protected property rights give less incentives to invest and locate factories
- Cultural environment: communication, religion, values, education and social structure


To what a company's good reputation is positively related?

measurable outcomes such as:
- innovation
- social responsibility
- financial soundness
- global competitiveness


What countries are part of what is called BRICS, countries considered to have the fast-growing economies?

- Brazil
- Russia
- India
- China
- South Africa


What are the differences between Canadian and International HRM?

- more emphasis on relocation, orientation and translation services
- decisions on currency for compensation
- security measures (terrorists, natural disasters...)


What are the three sources of employees to staff international operations?

- Expatriates (home-country nationals)
- Host-Country nationals
- third-country nationals


What is usually used as a staffing source for multinational operations?

A mix of all 3 sources


What is the main disadvantage of sending Expatriates for an organization?

it is very costly


What is called a short-term assignment?

assignment of 6 to 12 months


What are the main advantages of hiring host-country nationals?

- less costly
- sometimes required by local government to create jobs
- customers like to encourage businesses that helps local economy (local vs foreign)


What are the advantages of hiring third-country nationals?

- often multilingual
- less costly
- able to cope culturally with foreign environment


What restriction all countries have regarding the employment of foreigners?

need of work permit or visa


What are guest workers?

foreign workers who come to perform needed labour


To attract and retain global talent, organizations need to focus on:

- Brand: reputation
- compensation: competitive reward Program
- development of skills
- Culture: understand environment and offer support


What are the two major source of trained labour in international HRM?

- apprenticeships
- transnational teams


What are transnational teams?

group composed of members of multiple nationalities working on projects over multiple countries.


What is the fundamental task when forming a transnational team?

assemble the right group of people who can work effectively.


on what basis does other countries usually tend to hire?

- family ties, social status and common origins


What is the main factor we need to look at when selecting candidates for expatriation?

the person's tolerance of culture differences


What are the steps to select expatriate managers?

1- self-selection
2- create candidate pool
3- assess core skills relative to assignment
4- assess augmented skills and attributes


What are the technical competences locked at in the expatriate selection criteria?

- country experience
- language skills
- family flexibility
- professional experience
- international experience
- interpersonal skills


What is the primary reason for an assignment failure?

the person's family


What is the main content of training programs for employees working internationally?

- knowledge on country and culture of where they are going
- language training
- history, values, and dynamics of own organization


What can be done by employers to provide help to the expatriate's family?

- provide help finding jobs for the spouse
- provide career- and life-planning counselling


What is the process of repatriation used for?

To facilitate the process of the employees return, help the employees make the transition back home


What is the key to make repatriation successful?

communication: information for the employee to know what to expect on the return


Why is compensation one of the most complex areas of international HRM?

Because different countries have different values and normes regarding compensation