HRCI Updated GPHR Exam Questions and Answers by woody

Comprehensive and Detailed Explanation:

Exportationis typically thefirst and least risky entry strategyinto international markets. It involves selling goods or services produced in one country to customers in another. This method:

Requires minimal investment

Allows companies totest marketsbefore committing significant resources

Carries low legal and operational complexity compared to joint ventures or acquisitions

GPHR Study Guide Extract – Strategic Global Human Resources / International Market Entry Strategies:

“Exporting is often the first step for organizations entering global markets. It allows companies to build international experience with limited financial and legal exposure.”

This stage precedes more resource-intensive strategies likeGreenfield investments,joint ventures, ormergers.

Comprehensive and Detailed Explanation:

Ethnocentrismis the belief that one's own culture or ethnicity is superior to others. This mindset isnot limited to specific regions or groups— it existsacross all culturesand can manifest in:

Hiring practices

Leadership selection

Cultural insensitivity in global operations

It presents auniversal challengein cross-cultural management.

GPHR Study Guide Extract – Workforce Relations and Risk Management / Cross-Cultural Awareness:

“Ethnocentrism is a universal human trait. All cultures can exhibit a belief in their superiority, making cultural sensitivity a critical competency in global HR practice.”

Identifying and mitigating ethnocentrism is essential forinclusive global HR policies.

Comprehensive and Detailed Explanation:

Uniform global policiesmay overlooklocal labor laws, employment standards, or cultural expectations. If improperly applied, this can result in:

Non-compliance with local legislation

Legal disputes or reputational risk

Alienation of local employees

GPHR Study Guide Extract – Strategic Global Human Resources / Global HR Policy Development:

“Over-standardization of policies without local adaptation can increase the risk of legal liability and employee disengagement.”​

Standardization requireslocal compliance checksto be safe and effective.

Comprehensive and Detailed Explanation:

Inindividualist cultures(e.g., USA, UK),personal achievement and meritare central to how success is defined and rewarded. This contrasts withcollectivist cultures(e.g., Japan, China), wheregroup harmony and collective successare prioritized.

GPHR Study Guide Extract – Workforce Relations and Risk Management / Hofstede’s Cultural Dimensions:

“In individualist societies, people are expected to look after themselves and prioritize personal achievements. Recognition and advancement are often based on individual accomplishments rather than team performance.”

This cultural norm directly impacts reward systems, leadership styles, and performance management.