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Chapter 13: Comparative Global Industrial Relations
1. Which of the following terms refers to a category of international investment made by a
resident entity one country in an enterprise resident in another country with the objective of
establishing a lasting interest?
a. portfolio investment
b. franchising
c. foreign direct investment
d. licensing
2. The Industrial Revolution is said to have begun in ________ in the early 1800s.
a. North America
b. Asia
c. Russia
d. Europe
3. ________ is credited with creating capitalism from his market economy philosophy, which
emphasized allowing self-interest, profit making, and market forces to have free play.
a. Richard Easterlin
b. David Gale
c. Branko Horvat
d. Adam Smith
4. According to the economic theory of ________, a nation’s prosperity relies on a more
productive use of human capital and that by increasing the division of labor there would be
greater productivity, the development of new machinery and of new skills and trades
among workers.
a. mercantilism
b. capitalism
c. Chartism
d. syndicalism
Commented [SD1]: Does this question read properly? Make
sense?
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5. Which of the following is an economic theory that agreed with the government
noninterference maxim of capitalism but without an emphasis on human capital?
a. communism
b. Chartism
c. Manchester school
d. syndicalism
6. Which of the following statements is TRUE of the economic theory of mercantilism?
a. According to this theory, a nation’s prosperity depends on its human capital.
b. This theory discourages import and export and advocates that a nation be self-sufficient.
c. This theory rejects the idea that the government should play a role in the economy.
d. According to this theory, governments should encourage exports and discourage imports.
7. A ________ system of economics requires that the government play a protectionist role in
encouraging exports and discouraging imports, generally through the use of tariffs.
a. neoliberal
b. capitalist
c. mercantile
d. Manchester School
8. ________ refers to a political and economic philosophy that deemphasizes or rejects
government intervention in the economy, focusing instead on achieving progress and even
social justice by encouraging free-market methods and fewer restrictions on business
operations and economic development.
a. Communism
b. Neoliberalism
c. Mercantilism
d. Syndicalism
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9. ________ was a short-lived political movement in England based on the demand for
voting rights and the political representation of the working class in Parliament.
a. Chartism
b. Mercantilism
c. Progressivism
d. Neoliberalism
10. The ________ society believed that voters could be persuaded of socialism’s justice.
They sought to achieve reform by education, stimulating debate through lectures and
discussions initiated by democratically accountable and educated professionals.
a. Chartist
b. mercantile
c. Fabian
d. progressive
11. The Fabian society aimed to achieve ________.
a. neoliberalism
b. Christian anarchism
c. feudalism
d. democratic socialism
12. The International Labour Organization (ILO) is housed in ________.
a. Sydney
b. Geneva
c. New York
d. London
13. Which of the following is one of the nine principles that defined the philosophy of the
ILO?
a. A collective bargaining agreement should provide for mandatory arbitration to resolve a
dispute.
b. Work should be limited to an 8-hour day or a 48-hour week.
c. Employees should be paid according to their educational qualifications and skills.
d. Pension benefits should be given to all employees.
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14. The ILO had a unique ________ organizational structure that brought together
representatives of the participating governments, employers and workers.
a. network
b. tripartite
c. hierarchical
d. matrix
15. The first factories that appeared in Great Britain in 1740, concentrated on the production
of ________.
a. sugar
b. textiles
c. steel
d. glass
16. In Great Britain, the ________ set a ten-hour limit on the working day.
a. Trade Union Act
b. Employers and Workmen Act
c. Factory Act
d. Industrial Development Act
17. Which of the following organizations is a federation of labor unions founded in Great
Britain in 1868 to represent trade unionists?
a. Industrial Labor Organization
b. International Trade Union Confederation
c. World Federation of Trade Unions
d. Trades Union Congress
18. Which of the following beliefs influenced the British labor movement in the early 1920s?
a. Socialism’s decline is inevitable.
b. Strikes should not be used for political ends.
c. Labor and capital have opposing interests.
d. Mercantilism should be replaced by capitalism.
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19. In Great Britain, after the Labour Party won the election in 1945, the ________ was
nationalized by the Labour government.
a. textile industry
b. shipping industry
c. coal industry
d. sugar industry
20. The ________ union is the largest private sector union in Canada.
a. Canadian Office and Professional Employees Union
b. Canadian Union of Postal Workers
c. Canadian Federation of Nurses’ Union
d. Canadian Auto Workers
21. Australian labor relations are governed by the ________.
a. Fair Work Act
b. National Labor Relations Act
c. Workplace Relations Act
d. Fair Labor Standards Act
22. The Australian system of industrial relations is a centralized model, characterized by
industry-wide or company awards which are negotiated by company, union, and
sometimes government officials and then submitted to the ________ for ratification or
resolution of differences.
a. Australian Industrial Relations Commission
b. Office of the Federal Safety Commissioner
c. Safety, Rehabilitation and Compensation Commission
d. Australian Fair Work System
23. The ________ (1992) enhanced the EU by introducing intergovernmental cooperation to
the existing “Community” system and adding new forms of cooperation between the
member states, particularly on defense and in the area of justice and home affairs.
a. Treaty of Rome
b. Treaty of Craiova
c. Treaty of Lausanne
d. Treaty of Maastricht
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24. Which of the following countries uses the euro as currency?
a. Albania
b. Austria
c. Georgia
d. Iceland
25. ________ are permanent elected bodies of workforce representatives or joint committees
with employer’s representatives, established on the basis of law or collective bargaining
agreements with the overall task of promoting cooperation within the enterprise.
a. Bargaining units
b. Task teams
c. Quality circles
d. Works councils
26. Which of the following countries has a statutory work council system?
a. Germany
b. Ireland
c. Sweden
d. the United Kingdom
27. In which of the following countries are work councils compulsory in companies with
more than 100 employees?
a. Ireland
b. the United Kingdom
c. Norway
d. Sweden
28. ________ refers to a system in Germany which requires a company’s supervising board
to have employee representatives, giving unions and employees a say in policy and a stake
in company’s success.
a. Severability
b. Codetermination
c. Preemption
d. Arbitrability
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29. Benito Mussolini, a former revolutionary socialist, founded a new movement called
________ in Italy.
a. progressivism
b. syndicalism
c. fascism
d. mercantilism
30. In Italy, collective bargaining agreements that apply to all workers in a bargaining unit
and all employees in industries are covered by it if the trade union is properly registered.
This is known as ________.
a. obiter dicta
b. Rossiter–McLaughlin
c. erga omnes
d. Stewart–Tolman
31. Which of the following terms refers to the involvement of employees and employers in
the design of economic policy with the Italian government?
a. erga omnes
b. obiter dicta
c. keiretsu
d. concertazione
32. Which of the following terms refers to a Japanese conglomeration of companies
organized around a single bank for their mutual benefit?
a. keiretsu
b. concertazione
c. shunto
d. kaizen
33. The traditional Japanese wage system is based on ________.
a. qualifications
b. seniority
c. family ties
d. social status
34. More than 90 percent of Japanese labor unions are ________.
a. crafts unions
b. national federations
c. industry-level unions
d. enterprise-based unions
35. A ________ market economy is an economic system in China in which the state retains
ownership of the means of production, but wages, prices, and employment are allowed to
develop in the private sector.
a. feudalist
b. socialist
c. fascist
d. capitalist
True/False
36. A company is not a multinational enterprise just because it sells exports overseas; it has to
have actually moved part of its operations to another country by investing abroad.
37. In The Wealth of Nations, Adam Smith promoted the mercantile system of economic
monopoly over a market economy to produce national prosperity.
38. The economic theory of the Manchester school states that governments should regulate
the economic life of a nation in order to ensure a more productive use of human capital.
39. Communism advocates a market economy characterized by the principles of free trade,
competition and choice, and non-interference by government.
40. According to the economic theory of progressivism, a nation’s prosperity depends on the
amount of its capital, represented by bullion, and by the volume at which its exports
exceed its imports.
41. A mercantile system of economics requires a protectionist role of government in
encouraging exports and discouraging imports.
42. Syndicalism advocated mass strikes and rapid trade union recruitment as a means to
overcome employers’ actions.
43. The Fabians aimed for an economy based on mercantilism.
44. The signers of the Treaty of Versailles in 1919, which ended World War I, formed the
International Labour Organization (ILO) as a parallel organization to the League of
Nations.
45. The ILO had a unique tripartite organizational structure that brought together
representatives of the participating governments, employers, and workers as equal parties
in its governance.
46. The International Labour Organization is housed in New York.
47. The first factories that appeared in Great Britain in 1740 concentrated on the production
of steel.
48. The International Labour Organization is a federation of labor unions founded in Great
Britain in 1868 to represent trade unionists.
49. Under voluntarism, a union and an employer or an employers’ association can agree to be
a party to a collective bargaining agreement, and the contract can extend for as long as the
parties agree.
50. Canada’s labor relations developed to discourage the adversarial scheme of trade
unionism and collective bargaining.
51. Canadian labor boards have the authority to impose first contracts when employers refuse
to bargain with a new union.
52. Australia adopted a federal compulsory conciliation and arbitration system in 1904, which
banned collective bargaining.
53. Australia adopted the Anglo-American preference for voluntarism in labor relations.
54. The Workplace Relations Act of Australia allows closed shop provisions.
55. Under the Workplace relations Act of Australia, unions and workers are prohibited from
striking companies engaged in interstate commerce, except when they are negotiating a
new enterprise agreement.
56. The European Union’s priority objective has been the political and economic integration
of Europe through a gradual elimination of customs barriers and an introduction of
common external tariffs.
57. Ireland has a statutory work council system in which works councils are created by the
trade unions, which also define their regulations based on the national sectoral collective
agreement.
58. In Sweden, work councils are compulsory in companies with more than 100 employees.
59. There is no system of statutory works councils in the United Kingdom.
60. In Germany, work councils negotiate collective bargaining agreements that are primarily
concerned with wages.
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61. In Germany, work councils negotiate working conditions that are location specific and
enforce the collective bargaining agreement.
62. In France, companies that are not even members of the employers’ association that
entered into the agreement are still covered by a sector-level agreement once the
government has extended it.
63. The Italian unification movement, known as the Risorgimento, led to final unification in
1861.
64. The traditional Japanese wage system is based on seniority.
65. In Japan, during “shunto” enterprise-based unions in each industry simultaneously
conduct negotiations with their companies, to distribute wage increases proportionally
across the industry.