17-1. As noted in the chapter-opening vignette, Toyota ran into trouble for two reasons. One was that the company centralized most decision making in corporate headquarters. The second was that the CEO pressured top engineers to cut costs to improve profitability. What should an international company do to avoid these pitfalls? What are some potential pitfalls with your recommendations?121

17-2. How might an international firm trying to adapt HRM practices to the local culture produce worse results than it would produce by “exporting” HRM practices from the home office?

17-3. Assume you are the owner of a small business with 35 employees that produce shoes for the domestic market. Would you consider operating overseas to reduce labor costs and expand your market? What particular human resource issues are you likely to encounter as a small-business owner if you decided to do this? Explain.

17-4. U.S. MNCs experience a much higher rate of early returns with their expatriate employees than European and Japanese MNCs do. What explains this difference? What HRM policies and procedures would you develop to reduce this problem?

17-5. Reread the Manager’s Notebook, “Toxic Factories Take Hold of China’s Labor Force.” Do you think it is fair for a company to take advantage of lax environmental standards in other countries? Should a multinational company take special care (even if it is more costly) to invest in equipment to protect workers’ health? If employees and their families are aware of the risks they take in working at a particular plant, is the company acting ethically by allowing individuals to work in unsafe conditions? Explain.

17-6. Some people believe that U.S. MNCs should serve as vehicles for cultural change in developing countries by introducing modern U.S. HRM practices and instilling values (such as punctuality and efficiency) in the workforce that are necessary for industrialization. Do you agree with this assertion? Explain.

17-7. Some people believe that cross-cultural training often reinforces stereotypes by discussing aspects of a culture (i.e., “Punctuality is not as important to Southern Italians. It is acceptable to arrive a half hour late for an appointment.”) that may be applicable to some members of that culture but not to all. Do you agree? How can cross-cultural training be provided to avoid this problem? Explain.

17-8. Reread the Manager’s Notebook, “Learning How to Cope with Political Risks.” How do you think firms can better utilize HR practices to avoid the pitfalls illustrated in the Manager’s Notebook? Explain.

17-9. U.S. law does not prohibit selection decisions based on marital status, as long as they are applied equally to men and women. Why might a company have such a policy? Is it ethical? Is it in the best long-term interests of the company?