A firm that is currently locating facilities in a large number of other countries in order to capitalize on lower production and distribution costs is at what level of global participation?

International companies become multinational when they build facilities in a number of different countries, attempting to capitalize on lower production and distribution costs in different locations.

 A major U.S automaker has plants all over the world. It continues to shift its production from the United States, where labor unions have gained high wages for their members, to facilities in Mexico and China, where the wages are substantially lower. The company minimizes distribution and labor costs by locating facilities in central and eastern European countries such as Poland and Hungary for manufacturing and assembling automobiles to sell in the European market. 

International companies become multinational when they build facilities in a number of different countries, attempting to capitalize on lower production and distribution costs in different locations.

63.Inpatriates are A.managers from countries other than the parent country placed in facilities of other countries. B.managers from different countries who become part of the corporate headquarters staff. C.managers from one state being moved to another part of the country. D.managers from one division of the company being moved to another division.

Inpatriates are managers from different countries who become part of the corporate headquarters staff.

64.Which one of the following is not true of global organizations? A.They compete on state-of-the-art, top-quality products and services with lowest costs possible B.They increasingly emphasize flexibility and mass customization of products to meet the needs of particular clients C.They are usually driven to locate facilities in a country as a means of reaching that country's market or lowering production costs and must deal with the differences across the countries D.They attempt to create synergy through cultural differences

Multinational companies are usually driven to locate facilities in a country as a means of reaching that country's market or lowering production costs, and the company must deal with the differences across the countries.

65.Which attribute of a transnational HR system refers to making HR decisions from a global rather than a national or regional perspective? A.Transnational scope B.Transnational participation C.Transnational representation D.Transnational process

Transnational scope refers to the fact that HRM decisions must be made from a global rather than a national or regional perspective.

66.Which attribute of a transnational HR system refers to the multinational composition of a company's managers? A.Transnational scope B.Transnational participation C.Transnational representation D.Transnational process

Transnational representation reflects the multinational composition of a company's managers.

67.Which attribute of a transnational HR system refers to the extent to which planning and decision making include managers from different cultures? A.Transnational scope B.Transnational participation C.Transnational representation D.Transnational process

Transnational process refers to the extent to which the company's planning and decision-making processes include representatives and ideas from a variety of cultures.

68.Research on transnational HR systems within Canadian and American companies reveals that firms' HR systems are far A.less transnational than their strategic planning systems. B.more transnational than their organizational structures. C.less transnational than their accounting systems. D.more transnational than their accounting systems.

A survey of 50 companies in the United States and Canada found that global companies' HRM systems are far less transnational in scope, representation, and process than the companies' strategic planning systems and organizational structures.

69.According to estimates, what percentage of American employees sent on expatriate assignments overseas return early? A.Less than 15 percent B.15 to 40 percent C.40 to 50 percent D.Over 50 percent

The failure rate for expatriate assignments among U.S. firms had been estimated at between 15 and 40 percent.

70.Among American companies, which set of skills tends to be the most frequently used in expatriate selection? A.Interpersonal skills B.Foreign language skills C.Communication skills D.Technical skills

Technical competence has been almost the sole variable used in deciding whom to send on overseas assignments, despite the fact that multiple skills are necessary for successful performance in these assignments.