1. The document provides a quiz for BUS 325 Week 10 that covers Chapters 9 and 10 of the course material. Chapter 9 discusses international industrial relations and the global institutional context, covering topics like collective bargaining processes, union structures, and guidelines from organizations like the OECD and EU. Chapter 10 covers IHRM trends and future challenges, including issues like corruption, ethics, and managing risk from threats like terrorism. 2. The quiz contains multiple choice, true/false, and short answer questions testing comprehension of topics from both chapters, including questions about industrial relations systems, corporate involvement in foreign subsidiaries, responses of unions to multinationals, definitions of terms like offshoring and guanxi, and challenges of

1. BUS 325 Week 10 Quiz – Strayer
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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.

2. 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.

3. 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:

4. 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

5. 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

6. 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

7. 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 c. A disadvantage of

8. successful
subsidiary
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

9. 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

10. 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
SHORT ANSWER
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?

11. 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
TRUE/FALSE
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.

12. 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.

13. 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.
MULTIPLE CHOICE
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

14. 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 d. Corruption and

15. corruption 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

16. 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

17. 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

18. 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

19. 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

20. 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
SHORT ANSWER
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?