True / False
1. The European Union treaties do not address discrimination on the grounds of nationality.
a. True
b. False
2. As compared to the United States, there has been greater litigation in Europe concerning religious discrimination than
in the United States.
a. True
b. False
3. EU laws prohibiting gender discrimination are much more progressive than those in the United States.
a. True
b. False
4. In Germany, companies that employ more than 2,000 workers must have supervisory boards with 25%
representation from labor and 75% representation from shareholders.
a. True
b. False
5. Workers in the United States acquire a property interest in their jobs such that severance pay is an entitlement to
compensate for property taken upon dismissal from the position.
a. True
b. False
6. With the Civil Rights Act of 1991, Congress extended Title VII to U.S. based firms operating outside the United
States under the “control of U.S. entity“, and not in conflict with the host countries labor and employment laws.
a. True
b. False
7. An American citizen working abroad for a wholly owned subsidiary of a British company will be protected by the
ADEA if the subsidiary is a U.S. corporation.
a. True
b. False
8. Many foreign nations attract investment because of less demanding labor and environmental laws.
a. True
b. False
9. The U.S. view is that before a facility is shut down management must obtain the approval of its employee union.
a. True
b. False
10. Germany labor laws grants its workers equal to management rights to participate in the management of the business.
a. True
b. False
11. Under German Works Constitution Act, an employer has the right to close a plant or business facility if based on
economic necessity at any time and without consultation with workers.
a. True
b. False
12. In Germany, the supervisory board of directors is responsible for representing government and shareholder interests.
a. True
b. False
13. A number of foreign countries, especially those with a two-tiered board structure, require substantial employee
representation on the board of directors.
a. True
b. False
14. Europeans tend to feel that over a period of time, employees acquire a property interest in their jobs.
a. True
b. False
15. In the United States, employers under the “at will” employment relationship can terminate employees without cause.
a. True
b. False
16. In Japan, union leadership is a stepping stone to management.
a. True
b. False
17. In many countries, employers are required by law to consult with worker’s groups prior to any large-scale dismissals.
a. True
b. False
18. In the Civil Rights Act of 1991, Congress extended Title VII to all U.S. firms operating outside the United States.
a. True
b. False
19. Some of the newly formed countries of the former Soviet Union have laws that mandate discrimination against
certain people.
a. True
b. False
20. In the U.S. business decisions are within the domain of management without consultation with employees or the
union.
a. True
b. False
21. In Reyes-Gaona v. North Carolina Growers, the court grappled with the issue of:
a. Whether U.S. antitrust law applied to a U.S. company in Mexico.
b. Whether Mexican antitrust law applied to Mexican work in North Carolina.
c. Whether the U.S. ADA law applied in Mexico.
d. None of the above.
22. As to the general direction of labor abroad:
I. few countries require employee consultation or participation in management decisions.
II. Many countries place restraints on employee dismissal that are unfamiliar to U.S. investors.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
23. In many European countries, workers have been granted a right of consultation about or notice before reducing the
work force. The country that generally grants its workers the most rights of participation is:
a. Great Britain.
b. France.
c. Germany.
d. Italy.
24. A number of countries in Europe require a two-tiered board of directors. The two-tiered boards are:
a. A supervisory board and a management board.
b. A minority board and a majority board.
c. An elected board and an appointed board.
d. A labor board and an administrative board.
25. Unlike the case in the U.S., in many foreign nations, particularly European countries, when an investor acquires a
firm:
I. The investor is compelled to adhere to existing employment arrangements.
II. The investor must raise workers’ salaries at a set percentage determined by the host
country.
a. I only.
b. II only.
c. Both I and II.
d. Neither I nor II.
26. In the Kochi Hoso case, a Japanese radio broadcaster sued his employer for dismissal. As required by Japanese
law, the employer maintained written rules specifying conditions for which the employee could be discharged. The
employee was late for a broadcast on two occasions and was discharged pursuant to the written rules. The court
ruled that:
a. The employee could be discharged because the rules were in writing according to Japanese law.
b. The employee could be discharged because of the seriousness of the offense.
c. The employee was reinstated to his job because the law was unconstitutional.
d. The employee was reinstated to his job because the discharge was significantly unreasonable under the
circumstances and in violation of the socially accepted view.
27. In the Civil Rights Act of 1991, Congress extended Title VII to:
I. U.S. firms operating outside the United States under the control of a U.S. entity.
II. U.S. firms operating outside the United States except where compliance with Title VII
would violate the local law of the country where the firm is located.
III. Foreign firms operating abroad that employ U.S. citizens.
a. I only.
b. I and II.
c. I and III.
d. II and III.
28. The European Union treaties prohibit discrimination on the basis of:
a. Religion.
b. Ethnic Background.
c. Nationality.
d. All of the above.
29. Which of the following classifications are treated most similarly under the laws of Europe, the United States, and
Japan?
a. Religion.
b. Nationality.
c. National origin.
d. Sex.
30. Ms. Anderson is a 53-year-old American citizen working in New York for QMB, Inc., a wholly owned subsidiary of
QMB, GMBH, a German corporation. She applies for the position of Vice President of QMB, GMBHIa position
based in MunichIand is denied the promotion on the basis of her age. How will a U.S. federal court treat Ms.
Anderson’s failure-to-promote claim under the ADEA?
a. The court must proceed with the case since Ms. Anderson is a U.S. citizen working for QMB, Inc., a U.S.
corporation.
b. The court will dismiss the claim on the grounds that the ADEA does not cover employment decisions
regarding employment outside the United States made by a foreign-run company.
c. The court will dismiss the claim on the grounds that age is a bona fide occupational qualification to the
promotion position.
d. The court will dismiss the claim on the grounds of forum non conveniens.
31. With regard to global working conditions of child labor and prison labor, which of the following statements is true?
a. Efforts to develop WTO trade rules that tie labor standards to international trade have borne fruit in the new
GATT understandings between industrialized and developing nations.
b. Section 301 of the U.S Trade Act of 1974 has been amended to impose tariffs on goods that are produced by
child labor or prison labor.
c. A few companies, such as Levi-Strauss & Co., have adopted global sourcing guidelines to use only suppliers
who do not make use of child or prison labor.
d. Since NAFTA, Mexico has made great strides in making sure that children below the age of 14 are kept in
school and not used in manufacturing operations.
32. In Germany, workers:
a. Can be dismissed at the will of the employer.
b. Participate in corporate decisions.
c. Are often represented on boards of directors.
d. A and B
e. B and C
33. According to the EEOC, under Title VII as amended in 1991, a U.S. company is liable for unlawful discrimination
against U.S. citizen/employees in which of the following cases?
a. The foreign subsidiary is 100% owned by a U.S. parent company.
b. The foreign subsidiary is at least 50% owned by the U.S. parent company.
c. The foreign subsidiary is 25% owned by a U.S. company.
d. A, B, and C are all situations where a U.S. company may be liable under Title VII.
34. Which of the following is NOT one of the primary distinctions between U.S. and foreign labor laws?
a. Many non–U.S. nations’ laws require employee consultation or participation in management decisions that
Americans view as being the owner’s prerogative.
b. Many non-U.S. countries place legal constraints on employee dismissal that are unfamiliar to the U.S.
investor.
c. When a U.S. investor acquires a foreign business, by operation of law, it may also be acquiring the foreign
industry’s labor arrangements.
d. Many American laws require employee consultation or participation in management decisions that non-U.S.
businesspeople view as being the owner’s prerogative.
35. Due to Japanese culture, the income differentiation between management and labor is Western
cultures.
a. far greater than
b. about equal to
c. not nearly as great as in
d. non-existent as compared to
36. Traditionally, Chinese unions have differed from Western-style unions because:
a. union officials are often members of management as well.
b. their purpose is to avoid labor unrest, not to advocate for the interests of the workers.
c. members to not have the right to strike.
d. All of the above.
37. Due to cultural beliefs about the nature of work and entitlements, severance pay in the U.S. is typically ,
and severance pay in Europe is typically .
a. low; high
b. low; low
c. high; low
d. high; high
38. In China, before an employer can reduce its workforce by at least 20 employees or 10 percent, the employer must
satisfy which of the following conditions?
a. The employer is restructuring due to bankruptcy.
b. The employer is experiencing difficulties in production and operations.
c. A material (significant) change in the objective economic circumstances has occurred, making performance
and fulfillment of the employee contract impossible.
d. Any of the above.
39. The country that almost certainly has the most comprehensive set of employment discrimination laws is:
a. Germany.
b. China.
c. Iran.
d. the United States.
40. In the U.S., an employer may engage in employee discrimination if it is “reasonably necessary to the normal
operation of the particular business or enterprise,” a defense known as the:
a. bona fide occupational qualification defense.
b. occupational qualification defense.
c. occupational exception defense.
d. bona fide exception defense.
41. The Chinese government practices a form of institutional discrimination through the Hukou, which is a mechanism
for determining social entitlements based on:
a. age.
b. occupation.
c. gender.
d. place of residence.
42. Universally around the globe, women employees earn less than their male counterparts. Although the difference in
pay rates varies dramatically from one country to the next, according to the International Trade Union
Confederation, on an international scale women typically earn less than men.
a. close to 5%
b. close to 10%
c. close to 20%
d. close to 30%
43. Unlike U.S. employers, Chinese employers are allowed to set and advertise requirements for the of female
job applicants.
a. age
b. attractiveness
c. marital status
d. all of the above
44. An unsafe labor condition that is common in many emerging nations is:
a. blocked or locked exits.
b. the use of antiquated and poorly maintained equipment.
c. excessively long hours.
d. all of the above
45. Which of the following statements about prison labor is true?
a. Prison labor is used in virtually all countries around the globe.
b. Prison labor is practiced only in China.
c. Prison labor has been abolished in all countries.
d. Prison labor is used only in emerging economies.
46. Compare and contrast the employee discharge laws in the U.S. with those in Germany.
47. Compare and contrast attitudes toward the employer-employee relationship in the United States with those in other
countries. How are these reflected in the respective legal frameworks?
48. Compare and contrast employment discrimination laws in the United States with those in Europe. What are the
policy underpinnings?
49. Weigh the benefits and detriments of a U.S. company employing workers in developing countries, including children.
50. Provide examples of collective bargaining agreements that would and would not fall within the “foreign laws”
exception.
51. Draft a treaty between the U.S. and at least one other nation regarding international employment discrimination.
52. Draft a covenant identifying international standards regarding discrimination in employment.
53. You are an international human resources consultant retained by Pacific Paper Products, a U.S. corporation
headquartered in Seattle. PPP recently downsized its operations located in Germany, which resulted in significant
layoffs. The basis of this decision was the inability of the German plants to generate sufficient revenues. Although
marginally profitable, PPP concluded that it would be fiscally prudent to downsize the facilities. PPP provided ten
days written notice to their employees at these facilities prior to their termination. In response, the employees have
submitted claims for wrongful discharge. You have been retained to advise PPP’s board of directors on the validity
of these claims. Did PPP’s closure of the plant violate German law? Are the former employees’ claims for wrongful
discharge valid? Why or why not?