Question 1

Which of the following is NOT one of the benefits that has been realized from the expansion of free trade and globalization?
A) Workers in developed economies, such as the U.S., have benefited from increased employment in the high-paying manufacturing industries.
B) There has been a reduction in poverty in developing nations due to globalization.
C) Consumers have gained because of lower prices.
D) National economies have gained because of increased economic efficiency.
E) Workers in developing nations have gained from increased wages and employment.

Accepted Answer

The expansion of free trade and globalization has led to the decline of many high-paying manufacturing jobs in developed economies like the U.S. due to outsourcing and automation. This has been a major issue for workers in these nations, who have not necessarily benefited from globalization in the way that consumers and national economies have.

Question 2

Compensation costs tend to be the highest in Western European countries. Which of the following groups of countries have relatively low compensation costs?
A) Switzerland & Sweden.
B) Japan & Australia.
C) United States & Canada.
D) Korea & Taiwan.
E) France & Denmark.

Accepted Answer

Korea and Taiwan have relatively low compensation costs compared to Western European countries. Switzerland and Sweden are both in Western Europe and have high compensation costs. Japan and Australia, although not in Western Europe, have compensation costs that are higher than those in Korea and Taiwan. The United States and Canada are also not in Western Europe, but their compensation costs tend to be higher than those in Korea and Taiwan. France and Denmark are both in Western Europe and have high compensation costs.

Question 3

Three unique characteristics of Japan's industrial relations system are:
A) exclusive bargaining agent, lifetime employment, industry unions.
B) appropriate bargaining units, exclusive bargaining agent, industry unions.
C) enterprise unions, lifetime employment, seniority-based wage system.
D) lifetime employment, wage system, exclusive bargaining units.
E) labor-management conflict, lifetime employment, enterprise unions.

Accepted Answer

Japan's industrial relations system is characterized by enterprise unions, which are unions made up of workers within a single enterprise rather than a particular industry, lifetime employment, which prioritizes job security and stability, and a seniority-based wage system, where employees are paid based on their length of service rather than their job performance.

Question 4

Which of the following is false about labor relations in China?
A) Traditionally, the relationship has been between workers and the government, not workers and individual enterprises.
B) Today there is little flexibility for employers when it comes to staffing as all workers have a right to appeal any termination.
C) Rather than serving workers, trade unions were used in the past to keep an eye on and control workers.
D) At one time, workers were assigned to state-owned enterprises and guaranteed lifetime employment.
E) Although unions have been given the right to engage in collective bargaining, Chinese workers have little faith in the unions and see them only as social welfare agents.

Accepted Answer

This statement is false. In China, employers have significant flexibility when it comes to staffing. While there are labor laws that protect workers from wrongful termination, these laws are not always enforced, particularly in the case of migrant workers.

Question 5

Among those countries listed below, which has a lower percentage of the work force in unions than in the United States?
A) Spain
B) Germany
C) Switzerland
D) Australia
E) United Kingdom

Accepted Answer

The answer of Among those countries listed below, which has...

Question 6

Which of the following is NOT true about MNCs?
A) The majority of the largest 100 economies in the world are MNCs rather than sovereign nations.
B) Smaller countries can feel intimated by MNCs because of the enormity and economic power of large MNCs.
C) The 1,000 largest MNCs account for 80 percent of the world's industrial production.
D) The size (i.e., sales) of a large MNC is greater than the entire economies of many nations in which they do business.
E) MNCs have relatively little economic influence in most of the countries in which they operate.

Accepted Answer

This statement is not true about MNCs. In reality, MNCs have significant economic influence in many of the countries in which they operate, often having a greater economic impact than some sovereign nations.

Question 7

All of the following are present obstacles to transnational bargaining with MNCs except:
A) cultural differences (e.g., between free trade unions and socialist-linked unions).
B) organized and active MNC resistance.
C) differences in international labor relations law systems.
D) a lack of coordination of activities between organized labor in different countries.
E) different national priorities among different nations as it relates to labor organization.

Accepted Answer

Organized and active MNC resistance is not an obstacle to transnational bargaining with MNCs. Rather, it is a challenge that unions must overcome in order to achieve their goals.

Question 8

Which one of the following elements characterizes labor relations in Australia?
A) A highly centralized labor relations system.
B) Industry-wide or company-wide "awards" similar to collective bargaining agreements in the United States.
C) A prohibition against strikes in firms engaged in interstate commerce, except when negotiating a new employment agreement.
D) Nonunion bargaining.
E) All of these

Accepted Answer

The answer of Which one of the following elements characterizes...

Question 9

Which of the following is a criticism that organized labor in the United States levels at U.S. MNCs?
A) Their foreign investments deplete capital resources available for investment in the U.S. economy.
B) They export U.S. technology to exploit low-cost foreign labor, depriving U.S. workers of the benefits of this technology.
C) They substitute imports from their low-cost foreign operations for American-made goods.
D) They displace exports of American-made goods by producing cheaper goods for foreign markets using low-cost foreign labor.
E) All of these criticisms are leveled at MNCs.

Accepted Answer

All of the criticisms listed are leveled at U.S. MNCs by organized labor in the United States.

Question 10

Which of the following activities can frequently be found in the labor relations of Germany?
A) Union organization on a localized level only.
B) Low levels of unionization, especially in the engineering industries.
C) Arbitration at the individual plant level on wages.
D) Collective bargaining over wages and conditions of employment (job classification, working time, and working conditions) occurs formally outside the plant.
E) All of these

Accepted Answer

Collective bargaining over wages and conditions of employment (job classification, working time, and working conditions) occurs formally outside the plant. This is a key characteristic of Germany's labor relations system. Option A is incorrect as Germany has both localized and national-level unions. Option B is incorrect as Germany has a relatively high level of unionization, especially in the engineering industries. Option C is incorrect as arbitration typically takes place at a higher level than the individual plant, such as at the industry or regional level.

Question 11

Which of the following statements about NAFTA is true?
A) The NAFTA agreement includes the countries of the United States, Canada, and Mexico.
B) While many of the promised benefits due to NAFTA have not been realized, at least NAFTA has not resulted in serious unemployment in the United States and Canada.
C) NAFTA has caused a large loss of Mexican farm jobs because of lower barriers on the importation of crops to Mexico from other NAFTA nations.
D) Wages in Mexico have essentially been stagnant since NAFTA was enacted.
E) All of these statements are true.

Accepted Answer

All the statements provided are true regarding the effects and components of NAFTA.

Question 12

Which of the following is true about labor relations in Great Britain?
A) Collective bargaining is voluntary and unenforceable by law.
B) Shop stewards are volunteers that serve without pay.
C) Unions have great power and refuse to work with any employer they find to be in bad standing.
D) Labor disputes are confined to specific locations and secondary activities (e.g., boycotts) are prohibited.
E) All of these are true.

Accepted Answer

Collective bargaining is voluntary and unenforceable by law, shop stewards are volunteers that serve without pay, unions have great power and refuse to work with any employer they find to be in bad standing, and labor disputes are confined to specific locations and secondary activities (e.g., boycotts) are prohibited.

Question 13

MNCs have an internal source of products and profits from facilities in several countries that can be used as leverage to bargain down wages, benefits, and other employment conditions. This practice is known as ________________ the union.
A) shafting
B) double-bargaining
C) whipsawing
D) torching
E) interest-playing

Accepted Answer

"Whipsawing" is a tactic used by MNCs where they use their global presence to pit workers in different countries against each other and get them to compete for jobs. This competition can result in a downward pressure on wages and working conditions, ultimately weakening the power of unions. The other answer choices do not accurately describe this specific practice.

Question 14

Which of the following is a false statement about labor relations in Mexico?
A) The Mexican constitution gives workers the right to form independent unions.
B) Many collective bargaining agreements in Mexico contain an exclusion clause that requires workers to be union members before they can be hired.
C) Under the Mexican constitution, workers are entitled to participate in the profits of the enterprise.
D) If a strike is ruled legal in Mexico, managers have the right to keep working and hire replacement workers.
E) Many collective bargaining agreements in Mexico contain a protection clause that protects management from having to recognize and deal with a more demanding union.

Accepted Answer

In Mexico, if a strike is ruled legal, managers do not have the right to keep working and hire replacement workers. This statement is false.

Question 15

Canada's labor relations system is affected by:
A) foreign influences, especially from the United States.
B) a harsh climate resulting in pronounced cyclical fluctuations in its economy.
C) differences in provincial law leading to a disjointed, regionalized/localized approach to labor relations.
D) two different cultural and linguistic groups within the country.
E) all of these

Accepted Answer

The answer of Canada's labor relations system is affected by:
A)...

Question 16

Which of the following is NOT true about the practices of Japanese MNCs in their operations in the United States?
A) Japanese MNCs transfer a number of their practices (e.g., elimination of executive perks, use of work teams, emphasis on trust between workers and management, etc.).
B) It is much easier for labor to organize the operation of a Japanese MNC than it is a U.S.-based firm.
C) Sometimes the transfer of Japanese MNC practices is not successful, especially when sales decline.
D) Even though Japanese MNCs do transfer Japanese practices to U.S. facilities, the truth is that employment practices still tend to be similar to those of U.S.-based firms.
E) Language and cultural barriers can present a big problem for Japanese managers of U.S. operations.

Accepted Answer

It is not easier for labor to organize a Japanese MNC in the U.S. than a U.S.-based firm. In fact, Japanese MNCs have been known for their resistance to unions and collective bargaining in their U.S. operations. The other choices are true regarding the practices of Japanese MNCs in the U.S. except for choice B.

Question 17

Which of the following statements about the North American Agreement on Labor Cooperation (NAALC) is false?
A) The NAALC is a side agreement of NAFTA that deals with labor principles.
B) The NAALC has been judged to be very successful due to the increased cooperation it has fostered between NAFTA member nations in dealing with labor relations problems.
C) It is difficult to sanction the individual national governments when they violate NAALC labor principles.
D) The NAALC provides for arbitration of occupational safety and health, child labor, and minimum wage issues.
E) No worker has ever been reinstated nor has any financial sanction ever been imposed as a result of a NAALC case.

Accepted Answer

While the NAALC has fostered some degree of cooperation between member nations, it has not been judged to be very successful overall. In fact, critics have argued that it lacks sufficient enforcement mechanisms and has not effectively addressed labor violations. The other statements are all true: the NAALC is a side agreement of NAFTA that deals with labor principles, it can be difficult to sanction national governments for violations, it provides for arbitration of certain labor issues, and no worker has ever been reinstated nor has any financial sanction ever been imposed as a result of a NAALC case.

Question 18

Countries in Central and South America generally characterized as having comparatively advanced collective bargaining arrangements are:
A) Chile and Brazil.
B) Mexico and Argentina.
C) Ecuador and Nicaragua.
D) Costa Rica and Ecuador.
E) Brazil and Nicaragua.

Accepted Answer

The answer of Countries in Central and South America generally...

Question 19

Which one of the following concepts does NOT exist in Western European labor relations systems?
A) Exclusive representation of a bargaining unit.
B) Bargaining with unions in addition to work councils.
C) Bargaining between representatives of employer associations and representatives of a confederation of unions.
D) Benefits obtained more quickly through the political arena.
E) A great commitment to and high expenditures on training.

Accepted Answer

Exclusive representation of a bargaining unit is a concept more common in the United States, where a single union represents all employees in a bargaining unit, unlike in Western Europe where multiple unions or work councils may be involved.

Question 20

Which method have unions been the most successful in implementing in their dealings with MNCs?
A) transnational bargaining
B) boycotts in multiple foreign markets
C) threat of widespread strikes in multiple nations
D) adoption of international codes of conduct to regulate MNC behavior
E) all of these

Accepted Answer

Unions have been most successful in implementing the adoption of international codes of conduct to regulate MNC behavior. This strategy has allowed unions to hold MNCs accountable for their actions and ensure that they are adhering to certain ethical and social standards. While other strategies such as transnational bargaining, boycotts, and widespread strikes have been used by unions, the adoption of international codes of conduct has been the most effective.

Quiz 14: Labor Relations in Multinational Corporations and in Other Countries

Which of the following is NOT one of the benefits that has been realized from the expansion of free trade and globalization?

Compensation costs tend to be the highest in Western European countries. Which of the following groups of countries have relatively low compensation costs?

Three unique characteristics of Japan's industrial relations system are:

Which of the following is false about labor relations in China?

Among those countries listed below, which has a lower percentage of the work force in unions than in the United States?

Which of the following is NOT true about MNCs?

All of the following are present obstacles to transnational bargaining with MNCs except:

Which one of the following elements characterizes labor relations in Australia?

Which of the following is a criticism that organized labor in the United States levels at U.S. MNCs?

Which of the following activities can frequently be found in the labor relations of Germany?

Which of the following statements about NAFTA is true?

Which of the following is true about labor relations in Great Britain?

MNCs have an internal source of products and profits from facilities in several countries that can be used as leverage to bargain down wages, benefits, and other employment conditions. This practice is known as ________________ the union.

Which of the following is a false statement about labor relations in Mexico?

Canada's labor relations system is affected by:

Which of the following is NOT true about the practices of Japanese MNCs in their operations in the United States?

Which of the following statements about the North American Agreement on Labor Cooperation (NAALC) is false?

Countries in Central and South America generally characterized as having comparatively advanced collective bargaining arrangements are:

Which one of the following concepts does NOT exist in Western European labor relations systems?

Which method have unions been the most successful in implementing in their dealings with MNCs?