BUS 325 Week 10 Quiz – Strayer

BUS/325 Week 10 Quiz – Strayer

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CHAPTER 9: International Industrial Relations and The Global Institutional Context


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.


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


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

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

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

4. What are some examples of social dumping?

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

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

7. What is guanxi?

8. What are some reasons that an offshoring activity can fail?

CHAPTER 10: IHRM Trends and Future Challenges


1. The existence of universal ethical principles can be seen in agreements that exist among nations in the United Nations Declaration of Human Rights.

2. Bribery involves the payment to agents to motivate them to complete task they would do in the normal course of their duties.

3. Bribery undermines equity, efficiency and integrity in the public service.

4. There has been an international movement to criminalize the practice of bribery.

5. The Foreign Corrupt Practice Act (FCPA) was enacted to prohibit German based firms and nationals from making bribery payment.

6. HR professionals provide training in understanding the difference between corrupt bribery payments, gifts and allowable facilitation payments.

7. In 1996 the United Nations adapted the Declaration Against Corruption and Bribery in International Commercial Transactions.

8. MNE should not consider integrity as a basis for selecting an international assignee.

9. Expatriate can cut “ethical corners” to deliver good financial results as they are in a foreign country.

10. By systematically analyzing people and processes, IHRM professionals may contribute to “stabilizing risk through recommendations that “harden” processes in the value chain.

11. The Berlin-based non-government lobby group, Transparency International (TI) publishes an n annual Corruption Perceptions Index.

12. The three least corrupt countries in the world are New Zealand, Denmark and Singapore.

13. Each member of the OECD must submit a peer review report listing all their government officials bribed throughout the year.

14. There is no right or wrong in business.

15. Complexity of evaluating the overall performance of foreign subsidiaries and their senior management team will remain a dominant issue in international business in the twenty-first century.

16. Wal-Mart is an example of an NGO.

17. Greenpeace, an environmental group, has become internationalized and tend to have National ‘managers’.

18. Traditionally many domestic and international human resource managers have never been responsible for legal compliance and training issues related to safety in the workplace.

19. Terrorism is perceived to be a significant threat by MNEs.

20. Cyber-terrorism is activities to secure internal communications, open records, and maintenance of back-up system.

21. The field of IHRM has been criticized as being slow to develop as a rigorous body of theory.


1. The “general affairs” aspect of IHRM refers to:
a. The expectation that the human resource function will be the first line of defense in dealing with unpredictable and emergent issues from varied environments.
b. The mass conglomeration of all the different aspect of the IHRM.
c. The expectation that the human resource function will be the resource of last resort for unexpected issues and problems
d. The cross-cultural, coordinative aspect of IHRM

2. For the ethical absolutist:
a. There are no universal or international rights and wrongs
b. One should always do what one would do at home
c. There are fundamental principles of rights and wrongs
d. There are no rights and wrongs as far as business is concerned

3. “When in Rome, do as the Romans do” is an example of:
a. Ethical absolutism c. Ethical relativism
b. Ethical universalism d. Ethical religion

4. The need for international accords and corporate codes of conducts have :
a. Grown commensurately with the spread of international business
b. Decreased considerably with the spread of international business
c. Remained the same with the spread of international business
d. Decreased due to the countries becoming more socially attune

5. What are the two most frequent ethical problems encountered by international managers?
a. Child labor and prostitution c. Bribery and pornography
b. Bribery and corruption d. Corruption and slavery

6. The Foreign Corrupt Practice Act (FCPA) was passed in
a. 1965 c. 1980
b. 1977 d. 1959

7. As of 2009 how many countries have adapted the Declaration Against Corrupt and Bribery in International Commercial Transactions?
a. 30 c. 38
b. 15 d. 50

8. The countries perceived to be the least corrupt are:
a. USA, Chile and Belgium c. Guinea, Myanmar and Haiti
b. Denmark, New Zealand, Singapore d. Canada, Switzerland and Sweden

9. Instruments in developing and maintaining ethical cultures by expatriates can be reinforced by
a. Performance appraisal, compensation programs and trips home
b. Money, money and money
c. Exotic vacations and bonuses
d. Performance appraisals, shorter hours and trips home

10. To avoid the temptation to cut “ethical corners” expatriates should:
a. Be sent on vacations
b. Not be pressured to meet unreasonable goals
c. Be given ethical and cultural training
d. Should have a compensate salary to maintain an appropriate standard of living

11. Which country lobbied for many years to enact uniform domestic government regulations concerning bribery and corruption in the MNE environment?
a. Germany c. USA
b. Finland d. Switzerland

12. Who adopted the Declaration Against Corruption and Bribery in International Commercial Transactions?
a. The Geneva Convention c. The USA
b. The EU d. The United Nations

13. A typical short-term assignment in IHRM is a:
a. Training position c. Expatriate position
b. Marketing position d. Virtual position

14. IHRMs have largely ignored the non-government organizations because:
a. They don’t have the same physical risk
b. Their management ethos are values-driven, charitable and philanthropic ideals
c. Their management ethos are reflected by effectiveness and efficiency
d. They do not have national managers

15. The macro level of terrorist threats is an attack:
a. At the level of the individual person
b. At the specific region or industry
c. Of the global environment
d. At the cyber or information system environment

16. Activities to secure internal communications (emails, telephone) and employee privacy regulations would fall under which risk assessment category?
a. Cyber-terrorism c. Emergency preparedness
b. Industrial espionage, theft and sabotage d. Pandemics

17. Which of the following would be considered in the risk assessment category of in-facility security?
a. Protocol for evacuation c. The sabotage of software systems
b. Bomb threat procedures d. Providing portable 5 minute air packs

18. What does stabilizing risk through “harden” processes in the value chain mean?
a. To recruit people with capabilities and skills relevant to identified risk assessments
b. Replacing people with machines to ensure seniority protocols
c. Recruiting security specialist rather than functional experts
d. Eliminating at-risk steps in the value chain

19. What would be considered a NGO?
a. Red Cross c. Audi
b. Wal-Mart d. NATO

20. It is generally agreed internationally that the one thing that can most readily undermine equity, efficiency and integrity in the public service, undercut public confidence in markets, add cost to products and effects the safety and well-being of the general public is:
a. Bribery c. Sabotage
b. Facilitating payments d. Cyber-terrorism

21. The field of international human resource management has been regarded as :
a. A long standing cornerstone of business studies
b. Necessary in the MNE schools
c. A marginal academic area
d. Problematic

22. Multinational chief executives report terrorism:
a. Is not a significant threat to business growth, nor a threat to other organizations
b. Is a significant threat to business growth, but is not a threat to their organizations
c. Is not a significant threat to business growth , but is a threat to their organization
d. Is a significant threat to business growth and a significant threat to their organization

23. Research in the field of HRM:
a. Is relatively cheap and straightforward and simple
b. Is relatively expensive, yet straight forward and simple
c. Is relatively expensive and complicated
d. Is relatively cheap and uninteresting to most researchers

24. A working set of corporate risk assessment categories – a starting point for a MNE specific risk audit:
a. Do not yet exist
b. Consists of in value and out of value elements and counter espionage
c. Disaster protocols, workplace violence & industrial theft
d. Consists of in- facility emergency and disaster preparedness, in facility security, industrial espionage, cyber-terrorism and out-of-facility fire and travel risks

25. Emerging risk categories are all EXCEPT:
a. Avian flu c. Pandemics
b. Political terrorist groups d. Bribery

26. Bribery is:
a. Payments to agents to do things that are inconsistent with the purpose of their position to gain unfair advantage
b. Activities to secure internal communications in order to gain an unfair advantage
c. The act of hardening facilities in order to gain an unfair advantage
d. Unethical pressure to deliver good financial statements

27. What year was the International Journal of Human Resource Management established?
a. 1970 c. 1990
b. 1980 d. 2000

28. Low risk firms in low risk environments:
a. Do not need to invest as heavily in security systems and protocols
b. Should follow security strategies that focus on hardening individual sites
c. Should invest in elaborate risk management strategies
d. Should build redundant infrastructure

29. The three levels of terrorist threats are all EXCEPT:
a. Micro level c. Intra level
b. Primary level d. Macro level

30. Most executives:
a. Do not have a system to respond to critical incidents such as kidnapping of an executive
b. Are unwilling to discuss the protocols processes systems and structures in sensitive areas concerning critical incidents
c. Outsource their security concerns
d. Are unwilling to negotiate with terrorist


1. What are five categories of external risk assessment which needs to be addressed by a multinational enterprise?

2. What are the three levels of international human resource management analysis of potential risk from terrorist?

3. What are some non-government organizations and do they have the same international human resource management issues?

4. What are some developments in the international sector concerning bribery and corruption?

5. Security risk can be partitioned into two dimensions. What are the dimensions and describe low and high risk per each dimension?