Question 1

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

Accepted Answer

A)   Switzerland & Sweden.
B)   Japan & Australia.
C)   United States & Canada.
D)   Korea & Taiwan.
E)   France & Denmark. D

Question 2

In Germany, "codetermination" provides works councils with rights to information and consultation on subjects such as manpower planning, change in work processes, working environment, and job content.

Accepted Answer

A) True 
 B)False  True

Question 3

Collective bargaining in South America is far more common and unions are more sophisticated than in the United States.

Accepted Answer

A) True 
 B)False  False

Question 4

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

Accepted Answer

A)   Chile and Brazil.
B)   Mexico and Argentina.
C)   Ecuador and Nicaragua.
D)   Costa Rica and Ecuador.
E)   Brazil and Nicaragua.

Question 5

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

Accepted Answer

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

Question 6

In Australia, the Workplace Relations Act of 1996 (WRA) introduced individual contracts called Australian Workplace Agreements (AWAs) which enhanced ''choice'' by placing individual and collective agreements on an equal footing.

Accepted Answer

A) True 
 B)False

Question 7

Which of the following statements about NAFTA is true?

Accepted Answer

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.

Question 8

The majority of all workers in the United States are protected against termination without cause.

Accepted Answer

A) True 
 B)False

Question 9

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

Accepted Answer

A)   Spain
B)   Germany
C)   Switzerland
D)   Australia
E)   United Kingdom

Question 10

Transnational collective bargaining will be commonplace in the near future because international labor organizations are so well organized and active in coordinating with one another.

Accepted Answer

A) True 
 B)False

Question 11

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

Accepted Answer

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.

Question 12

American jobs have been lost in major industries, such as the automobile, steel, textile, footwear, and consumer electronics, whereas jobs in the aircraft, computers, entertainment, and finance industries have increased.

Accepted Answer

A) True 
 B)False

Question 13

Employees of all private firms in Japan are guaranteed lifetime employment.

Accepted Answer

A) True 
 B)False

Question 14

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

Accepted Answer

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.

Question 15

Unions in Cuba represent a broad array of constituents including current workers, retired pensioners, and even the unemployed.

Accepted Answer

A) True 
 B)False

Question 16

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.

Accepted Answer

A)   shafting
B)   double-bargaining
C)   whipsawing
D)   torching
E)   interest-playing

Question 17

Pressure on a MNC by a local union strike may be reduced because MNC operations in other countries continue to generate products and profits.

Accepted Answer

A) True 
 B)False

Question 18

Organized labor in the United States is generally supportive of MNCs because they believe that MNCs improve wages for workers in the U.S.

Accepted Answer

A) True 
 B)False

Question 19

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

Accepted Answer

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.

Question 20

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

Accepted Answer

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.

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

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

In Germany, "codetermination" provides works councils with rights to information and consultation on subjects such as manpower planning, change in work processes, working environment, and job content.

Collective bargaining in South America is far more common and unions are more sophisticated than in the United States.

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

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

In Australia, the Workplace Relations Act of 1996 (WRA) introduced individual contracts called Australian Workplace Agreements (AWAs) which enhanced ''choice'' by placing individual and collective agreements on an equal footing.

Which of the following statements about NAFTA is true?

The majority of all workers in the United States are protected against termination without cause.

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

Transnational collective bargaining will be commonplace in the near future because international labor organizations are so well organized and active in coordinating with one another.

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

American jobs have been lost in major industries, such as the automobile, steel, textile, footwear, and consumer electronics, whereas jobs in the aircraft, computers, entertainment, and finance industries have increased.

Employees of all private firms in Japan are guaranteed lifetime employment.

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

Unions in Cuba represent a broad array of constituents including current workers, retired pensioners, and even the unemployed.

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.

Pressure on a MNC by a local union strike may be reduced because MNC operations in other countries continue to generate products and profits.

Organized labor in the United States is generally supportive of MNCs because they believe that MNCs improve wages for workers in the U.S.

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

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