Deck 9: International Industrial Relations and The Global Institutional Context

Question 1

Unlike the OECD,the Commission of the EU can translate guidelines into laws.

Answer 1

True

Question 2

Subsidiaries formed by Greenfield tend to be given more autonomy over industrial relations than firms acquired by acquisition.

Answer 2

False

Question 3

European firms have tended to deal with industrial unions at the firm level rather than at industry level.

Answer 3

False

Question 4

Western multinational enterprises that are planning offshore activities in China should not be concerned with guanxi.

Question 5

Multinationals subsidiaries experienced smaller and shorter strikes than local firms.

Question 6

A large home market is a strong incentive to adapt to host-country institutions and norms.

Question 7

The less one knows about how a structure came to develop in a distinctive way,the more likely one is to understand it.

Question 8

Treating labor relations as incidental and relegating them to the specialists in the various countries are inappropriate.

Question 9

The difference in union structures has no influence on collective bargaining process in Western countries.

Question 10

The EU does not aim to establish minimum standards for social conditions that will safeguard the fundamental rights of workers.

Question 11

The Social Accountability 8000 standards were drawn from the UN human rights conventions.

Question 12

In the international industrial relations field,no industrial relations system can be understood without an appreciation of its historical origin.

Question 13

The decline in union density in many countries can be explained by economic factors.

Question 14

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.

Question 15

Industrial relations are a faithful expression of the society in which they operate,and of the power relationships between different interest groups.

Question 16

Poaching of skilled employees never happens in Asian-Pacific countries.

Question 17

Multinational subsidiaries tend to have more frequency of strikes than indigenous firms.

Question 18

An "investment strike" is a concern of trade unions about multinationals refusing to invest additional funds in the plant.

Question 19

Corporate headquarters will become involved or oversee labor agreements made by foreign subsidiaries.

Question 20

Labor unions interpreted the chapeau clause to mean "compliance with local law supersedes the OECD guidelines."

Question 21

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

Question 22

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

Question 23

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

Question 24

Public uproar over working conditions of offshoring companies resulted in a universal standard called:

A) ISO 9000
B) NGO watch
C) Childcare 2000
D) Social Accountability 8000

Question 25

Recent evidence has shown that one of the priorities when making investment location decisions is:

A) Presence of unions
B) Capital resource availability
C) Equal opportunity government regulations
D) The ability to dismiss employees

Question 26

A multinational firm usually delegates the management of industrial relations to:

A) Their foreign subsidiaries
B) The headquarters industrial division
C) An offshoring division
D) The marketing division

Question 27

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

Question 28

A major problem in the offshoring countries of India and China is:

A) Skill shortages
B) Resource shortages
C) Educational quality
D) Research and development

Question 29

Multinationals operating in Western Europe,Japan and Australia have a more serious problem than wage level which is:

A) Restricted to overtime provisions
B) Long term labor contracts
C) The ability to vary employment levels
D) Unpredictable regulatory environment

Question 30

McDonald's company policy is to staff its restaurants with:

A) 90% nationals
B) Only nationals
C) Bilingual managers
D) Union employees

Question 31

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

Question 32

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

Question 33

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

Question 34

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

Question 35

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

Question 36

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

Question 37

Greater emphasis on formal management controls and close reporting systems tend to be present in:

A) European firms
B) USA firms
C) Asian firms
D) Australian firms

Question 38

Which country has the highest level of union membership?

A) USA
B) Sweden
C) Germany
D) Italy

Question 39

Influencing wage levels to the extent that cost structures become uncompetitive is:

A) A byproduct of a successful subsidiary
B) A result of government regulations
C) A disadvantage of trade unions
D) A multinational problem

Question 40

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

Question 41

The term "offshoring" is frequently used as a subcategory of:

A) MNE training
B) Outsourcing
C) Drilling
D) Internationalizing

Question 42

Union decline can be linked to all of the following EXCEPT:

A) New form of work organization
B) Globalization of production
C) Changes in work force structure
D) Lessening of governmental controls

Question 43

What does the term offshoring mean? What are some of the weaknesses in the business process outsourcing (BPO)industry?

Question 44

What are some examples of social dumping?

Question 45

Union influences can increase unit manufacturing cost in Europe by as much as:

A) 5%
B) 20%
C) 15%
D) 50%

Question 46

What are some reasons that an offshoring activity can fail?

Question 47

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

Question 48

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

Question 49

How have unions responded to multinationals as the bargaining power of the multinationals has grown?

Question 50

What are some factors which may require multinational headquarters to be involved in industrial relations?

Question 51

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

Question 52

What are the three ways that a trade union may limit the strategic choices of multinationals?

Question 53

What is guanxi?

Question 54

Strike-proneness can be measured by

A) Frequency,size,and duration
B) Duration,industry and size
C) Size,industry and duration
D) Frequency,industry and size

Question 55

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

Question 56

International call-centers are an example of:

A) NGO
B) Social dumping
C) Offshoring activities
D) Lobbying

Question 57

Trade unions share what seven concerns about dealing (negotiating)with a MNE?

Question 58

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