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Quiz
9: Chapter 9
Quiz
10: Chapter 10
CHAPTER
9: International Industrial Relations and The Global Institutional Context
TRUE/FALSE
1. In the international industrial relations
field, no industrial relations system can be understood without an appreciation
of its historical origin.
2. Industrial relations are a faithful
expression of the society in which they operate, and of the power relationships
between different interest groups.
3. The difference in union structures has no
influence on collective bargaining process in Western countries.
4. Corporate headquarters will become involved
or oversee labor agreements made by foreign subsidiaries.
5. European firms have tended to deal with
industrial unions at the firm level rather than at industry level.
6. Subsidiaries formed by Greenfield tend to be
given more autonomy over industrial relations than firms acquired by
acquisition.
7. A large home market is a strong incentive to
adapt to host-country institutions and norms.
8. The decline in union density in many
countries can be explained by economic factors.
9. Multinationals subsidiaries experienced
smaller and shorter strikes than local firms.
10. Multinational subsidiaries tend to have more
frequency of strikes than indigenous firms.
11. Treating labor relations as incidental and
relegating them to the specialists in the various countries are inappropriate.
12. Unlike the OECD, the Commission of the EU can
translate guidelines into laws.
13. Labor unions interpreted the chapeau clause
to mean “compliance with local law supersedes the OECD guidelines.”
14. The EU does not aim to establish minimum
standards for social conditions that will safeguard the fundamental rights of
workers.
15. The less one knows about how a structure came
to develop in a distinctive way, the more likely one is to understand it.
16. With the expansion of the EU in 2004 to
include 10 new members that are relatively low-income states, there has been an
increased sensitivity to the problem of social dumping.
17. An “investment strike” is a concern of trade
unions about multinationals refusing to invest additional funds in the plant.
18. The Social Accountability 8000 standards were
drawn from the UN human rights conventions.
19. Poaching of skilled employees never happens
in Asian-Pacific countries.
20. Western multinational enterprises that are
planning offshore activities in China should not be concerned with guanxi.
MULTIPLE
CHOICE
1. In Sweden and Germany the term “collective
bargaining” means:
|
a.
|
Negotiations
between a local trade union and management
|
|
b.
|
Negotiations
between an employers’ organization and a trade union at the industry level
|
|
c.
|
Bargaining
process as a class struggle between labor and capital
|
|
d.
|
Bargaining
at an open market for products
|
2. Conglomerate unions are:
|
a.
|
Members
employed in more than one industry
|
|
b.
|
Skilled
occupational grouping across industries
|
|
c.
|
Open
to all employees
|
|
d.
|
Representatives
of all grades of employees in an industry
|
3. A lack of familiarity by multinational
managers of local industrial and political conditions has:
|
a.
|
Worsened
a conflict with a local firm that could have been resolved
|
|
b.
|
Conflicted
with social norms
|
|
c.
|
Encouraged
the development of a union
|
|
d.
|
Contributed
to the failure of a MNE
|
4. McDonald’s company policy is to staff its
restaurants with:
|
a.
|
90%
nationals
|
c.
|
Bilingual
managers
|
|
b.
|
Only
nationals
|
d.
|
Union
employees
|
5. A multinational firm usually delegates the
management of industrial relations to:
|
a.
|
Their
foreign subsidiaries
|
c.
|
An
offshoring division
|
|
b.
|
The
headquarters industrial division
|
d.
|
The
marketing division
|
6. Greater emphasis on formal management
controls and close reporting systems tend to be present in:
|
a.
|
European
firms
|
c.
|
Asian
firms
|
|
b.
|
USA
firms
|
d.
|
Australian
firms
|
7. Poor subsidiary performance tends to:
|
a.
|
Be
accompanied by decreased corporate level involvement in local industrial relations
|
|
b.
|
Be
accompanied by increased corporate level involvement in industrial relations
|
|
c.
|
Encourage
the formation of labor unions
|
|
d.
|
Be
independent of corporate level involvement in local industrial relations
|
8. Which country has the highest level of union
membership?
|
a.
|
USA
|
c.
|
Germany
|
|
b.
|
Sweden
|
d.
|
Italy
|
9. Multinationals operating in Western Europe,
Japan and Australia have a more serious problem than wage level which is:
|
a.
|
Restricted
to overtime provisions
|
c.
|
The ability to vary employment levels
|
|
b.
|
Long
term labor contracts
|
d.
|
Unpredictable
regulatory environment
|
10. Recent evidence has shown that one of the
priorities when making investment location decisions is:
|
a.
|
Presence
of unions
|
c.
|
Equal
opportunity government regulations
|
|
b.
|
Capital
resource availability
|
d.
|
The
ability to dismiss employees
|
11. International trade secretariats (ITS):
|
a.
|
Are the acts of staging an investment strikes
by the multinational
|
|
b.
|
Is a
loose confederations to provide worldwide links for the national unions in a
particular industry or trade
|
|
c.
|
Is a
lobbyist for restrictive national legislation in the USA and Europe
|
|
d.
|
Are
clearing houses for information on key labor provisions around the world
|
12. The Chapeau Clause:
|
a.
|
States
that multinationals should adhere to the guidelines within the framework of
law, regulations and labor relations and employment practices in each country
they operate
|
|
b.
|
Identifies
a number of workplaces related principles that should be respected by all
nations
|
|
c.
|
Is a
set of guidelines that cover disclosures of information, competition,
financing, taxation and industrial relations
|
|
d.
|
Is a
key labor directive imposed by the EU
|
13. The major objective of the implementation of
the Single European Act was to:
|
a.
|
Create
a single coherent basis for action by EU members
|
|
b.
|
Establish
the Single European Market
|
|
c.
|
To
create a social policy in regard to labor laws and working conditions
|
|
d.
|
Ensure
labor uniformity across Europe
|
14. Elements of International Trade
Secretariats to achieve its long term
goal of transnational bargaining are all of the flowing EXCEPT:
|
a.
|
Research
and information
|
|
b.
|
Call
company conferences
|
|
c.
|
Establishing
company councils
|
|
d.
|
Superior
knowledge and expertise in industrial relations
|
15. Generally speaking, corporate headquarters:
|
a.
|
Is
seldom involved in labor agreements made by foreign subsidiaries because
these agreements seldom effect international plans nor create precedents for
negotiations in other countries
|
|
b.
|
Is
seldom involved in labor agreements made by foreign subsidiaries because
headquarters staff feel they do not understand local regulatory and
institutional contexts
|
|
c.
|
Is
often involved in labor agreements made by foreign subsidiaries because
headquarters staff do not trust local labor specialist to bargain effectively
|
|
d.
|
Will
become involved in labor agreements made by foreign subsidiaries because
these agreements may affect international plans and/or create precedents for
negotiations in other countries
|
16. A major problem applying the strategy of
lobbying for restrictive national legislation is:
|
a.
|
The
reality of conflicting national economic interest particularly in times of
economic downturn
|
|
b.
|
The
reality of diffuse and uncoordinated legislative processes
|
|
c.
|
The
reality of diverse interests by the many and varied union representatives as
they seek to approach legislators
|
|
d.
|
The
reality of the complexity of labor legislation and the inability of most
individual legislators to understand the key issues involved
|
17. Public uproar over working conditions of
offshoring companies resulted in a universal standard called:
|
a.
|
ISO
9000
|
c.
|
Childcare
2000
|
|
b.
|
NGO
watch
|
d.
|
Social
Accountability 8000
|
18. A major problem in the offshoring countries
of India and China is:
|
a.
|
Skill
shortages
|
c.
|
Educational
quality
|
|
b.
|
Resource
shortages
|
d.
|
Research
and development
|
19. Influencing wage levels to the extent that
cost structures become uncompetitive is:
|
a.
|
A
byproduct of a successful subsidiary
|
c.
|
A
disadvantage of trade unions
|
|
b.
|
A
result of government regulations
|
d.
|
A
multinational problem
|
20. Labor unions response to multinationals are
all of the following EXCEPT:
|
a.
|
To
agree to a major contractual request by MNEs
|
|
b.
|
To
form international trade secretariats
|
|
c.
|
To
lobby for restrictive national legislation
|
|
d.
|
To
achieve regulations of MNEs by international organizations
|
21. Union influences can increase unit
manufacturing cost in Europe by as much as:
|
a.
|
5%
|
c.
|
15%
|
|
b.
|
20%
|
d.
|
50%
|
22. Strike-proneness can be measured by
|
a.
|
Frequency,
size, and duration
|
c.
|
Size,
industry and duration
|
|
b.
|
Duration,
industry and size
|
d.
|
Frequency,
industry and size
|
23. Union decline can be linked to all of the
following EXCEPT:
|
a.
|
New
form of work organization
|
c.
|
Changes
in work force structure
|
|
b.
|
Globalization
of production
|
d.
|
Lessening
of governmental controls
|
24. A major management challenge for firms with
global brands such as Nike has been:
|
a.
|
The
reaction of Western consumers to allegations of unfair unemployment practices
used by subcontractors in countries
|
|
b.
|
Checking
that performance and rewards systems take into consideration codes of conduct
|
|
c.
|
Physical
risk such as danger of staff being taken hostage and of having property
damaged
|
|
d.
|
Having
national “managers” in various countries with various structural forms for
coordination and accountability
|
25. The term
“offshoring” is frequently used as a subcategory of:
|
a.
|
MNE
training
|
c.
|
Drilling
|
|
b.
|
Outsourcing
|
d.
|
Internationalizing
|
26. International call-centers are an example of:
|
a.
|
NGO
|
c.
|
Offshoring
activities
|
|
b.
|
Social
dumping
|
d.
|
Lobbying
|
27. Guanxi is:
|
a.
|
A
network connection based on dyadic, personal relationships between people
|
|
b.
|
A
term used to describe skill shortages in India and China
|
|
c.
|
A
flourishing business process outsourcing industry
|
|
d.
|
The
world’s largest International call center
|
28. Ex-host-country nationals ( EHCN) is
|
a.
|
A
person who was fired in a MNE and wants to return to their home country
|
|
b.
|
A
person who studied abroad and returns to their home country
|
|
c.
|
A
manager who is transferred from one country to another and then returns to
the home country
|
|
d.
|
An
international traveler who is banned from their home country
|
29. Common reasons for offshoring failure is all
EXCEPT:
|
a.
|
Unsatisfactory
quality of products or services
|
|
b.
|
Problems
of management control
|
|
c.
|
Inadequate
training
|
|
d.
|
Rapid
turnover of local staff
|
|
e.
|
Language
problems
|
30. Iron rice bowl refers to:
|
a.
|
Additional
iron supplement added in a bowl of cereal
|
|
b.
|
Guaranteed
continuation of employment
|
|
c.
|
Exclusive
offshore activities in China
|
|
d.
|
Stringent
compensation differentials
|
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