HRM 340 Chapter 11 - J. Wanek (Boise State)

Company codes of conduct typically include a statement of commitment regarding:

A ) Fair business practices and respect for relevant laws B ) Labor and environmental standards C ) Corporate citizenship and ethics **D ) All of the above**

Foreign direct investment is vulnerable to criticism because:

A ) It can be used to exploit workers with no alternatives and degrade the environment when there are no protections or incentives B ) It can result in job loss for domestic workers C ) It does not encourage development of countries by bringing in jobs and new technology **D ) A and b**

As long as it does not create trade barriers, the WTO allows member countries to establish:

A ) Standards necessary to protect human and animal life or health B ) Standards necessary to conserve exhaustible natural resources C ) Standards necessary to protect plant life **D ) All of the above**

Configuration and coordination are two dimensions of:

A multinational corporation's global strategy.

The Declaration on Fundamental Principles and Rights at Work established:

A set of core labor standards for countries participating in the ILO

An export processing zone is:

A special area within a developing country that is dedicated to attracting and supporting multinational investment.

A European Works Council is:

A transnational, company-level committee of employees from different operations that has the right to consult with and receive information from a company.

Corporate codes of conduct:

Address labor issues in a global economy and are enforced through public and consumer pressure.

The North American Free Trade Agreement (1992)

Allows companies from Canada, U.S. and Mexico to invest in any of these three countries.

Corporate codes of conduct as a method for establishing fair employment are problematic because they lack common minimum standards and ____________________.

An external enforcement mechanism

Most complaints under the NAALC:

Are filed against multinational companies.

The United States has negotiated a free trade agreement with:

Canada and Mexico

The European Union includes all of the following except:

Common labor laws

A _____________ is a country's unique ability to excel in the product of a particular good (or service) due to its proximity to natural resources or greater expertise.

Comparative Advantage

A company's European Works Council is granted ______________________rights which give it access to company information.

Consultative

The most important problems with corporate codes of conduct are:

Content and enforcement.

The NAALC relies on _________ to promote compliance with each country's existing laws.

Cooperation

The NAALC relies on ____________________ to promote compliance with each country's existing laws.

Cooperation

A written statement of standards that a company pledges to follow in its business practices is known as __________.

Corporate code of conduct

A written statement of standards that a company pledges to follow in its business practices is known as a ____________________________.

Corporate code of conduct

Compliance with corporate codes of conduct to establish labor standards in the global arena is generally a function of:

Corporate self interest and good will

The __________ is the most powerful decision-making authority of the European Union and consists of each country's minister for whichever issue is under discussion.

Council of the EU

Which of the following does not present a significant barrier to transnational labor collaboration?

Differences in opinion about the need for unionization and labor protection

The primary methods to achieve European unification and integration have been ______ rather than political

Economic

The _________ is a free trade area that includes free capital an labor mobility as well as common monetary and fiscal policies for member countries in Europe

European Union

________ incorporates labor, environmental, public health, and other standards into trade agreements.

Fair trade

The greatest successes of the NAALC include all of the following except:

Fewer freedom of association and collective bargaining violations by participating countries.

Cross-border flows of corporate investments such as purchasing or establishing foreign subsidiaries and joint ventures is called

Foreign direct investment

The cross-border flow of multinational corporation investment to purchase, establish foreign subsidiaries and embark on joint ventures is known as _______________________________.

Foreign direct investment

________________ occurs when all trade barriers between countries are removed to allow consumers and produces to benefit from specialization and economies of scale.

Free trade

According to free market economic models, free trade across countries encourages all of the following except:

Generalist countries (i.e., countries that can produce some of everything)

_______________________________ is a term used to describe increased economic integration between countries.

Globalization

International trade can be defined as the cross-border flow of:

Goods and services

The primary impetus for the European Union was and is:

Greater political stability.

If a WTO country is in violation of a trade agreement, it risks:

Having to pay damages.

The ____________________ is a specialized agency of the United Nations focused on promoting social justice and internationally recognized human and labor rights.

ILO

The cross-border flow of people migrating from one country to another is known as ____________________.

Immigration

Bemish Corp. decides to diversify its portfolio by buying stocks of Indian and Chinese companies. This is an example of:

International investment portfolio.

The cross-border flow of goods and services (imports and exports) is known as _____________.

International trade

The cross-border flow of goods and services (imports and exports) is known as _______________________________.

International trade

Which of the following is not considered an advantage of immigration?

It results in overall wage increases because there are more job applicants and employers are able to choose the "cream of the crop."

Removing trade barriers that protect an inefficient industry is likely to result in _______ in that industry

Job Losses

Removing trade barriers that protect an inefficient industry is likely to result in ______________ in that industry.

Job losses

Removing trade barriers that were protecting an inefficient industry will likely cause ____________________ in that industry.

Job losses

The purpose of the NAALC is to protect:

Labor

The ILO's Declaration of Fundamental Principles and Rights at Work establishes a set of core ___________ that include freedom of association and collective bargaining, the abolition of forced labor, no discrimination in employment, and the elimination of child labor.

Labor Standards

U.S. labor's biggest fear of foreign direct investment is:

Loss of jobs and downward pressure on wages.

The North American Agreement on Labor Cooperation promotes all of the following except:

Management rights to determine work assignments.

A ___________________ is a Mexican factory that assembles U.S. components for export to the United States.

Maquiladora

The European Union is a unique economic integration arrangement because it includes common _________________ and fiscal policies between countries.

Monetary

NAFTA inclues a side agreement known as __________ that seeks to protect workers by promoting union representation, nondiscrimination, equal pay, minimum wages, and workplace safety

NAALC

The _____________________________ is a trade agreement between Mexico, the U.S., and Canada that removes tariffs and other barriers to trade.

NAFTA

___________ trade barriers include quotas, domestic subsidies, discriminatory government procurement policies, and regulations such as import licensing and product standards.

Nontariff

European Works Councils are intended to:

Provide information to workers that can lead to cooperation between management and labor.

Which of the following is not an outcome of the NAALC:

Reduced the incidence of retaliation against workers who are attempting to unionize

International trade allows more efficient use of ____________resources.

Scarce

_______________ occurs when a foreign competition is able to unfairly sell goods or services at a lower price than domestic producers by taking advantage of lower labor or environmental standards

Social Dumping

Because U.S. laws tightly regulate the disposal of toxic materials from the thousands of electronic devices discarded each year, some companies have contracted with companies in China and other countries to dispose of these products. Unfortunately, the lack of regulation in these countries has resulted in unsafe disposal practices, creating toxic waste areas where drinking water and soil are no longer safe. This situation illustrates the concept of:

Social dumping

When a foreign competitor is able to unfairly sell a product at a lower price because it receives subsidies from the host government or exploits, lower labor or lower environmental standards, it is called:

Social dumping

Which of the following is not a type of European Works Council?

Socialist

Compliance with the standards set by the NAALC depends on adverse publicity that stems from the NAALC's public proceedings is sometimes called the ___________________ aspect of the NAALC.

Sunshine

The World Trade Organization has been criticized for:

Taking a largely free-trade philosophy over a fair trade philosophy.

Which of the following cannot be considered a nontariff trade barrier?

Taxes on imports

The rights of a European Works Council include all of the following except:

The right to collectively bargain.

International investment portfolios can be beneficial because:

They provide working capital for local companies and financing for foreign government operations.

The ______ is an international organization of countries that provides a forum for negotiating and enforcing global trade agreements.

WTO

The World Trade Organization:

Was created to administer the General Agreement on Tariffs and Trade provisions and to handle future trade negotiations

A European _______ is a transnational, company-level committee of employees that has consultation and information rights on issues that affect workers in more than one country.

Works Council

Configuration affects labor relations through its effects on the relative bargaining power between

corporations and employees.