HRM and Industrial Relations in International Business
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Questions and Answers

What is a challenge to the effectiveness of strikes in some situations?

  • The lack of government intervention
  • The ability of organisations to hire temporary workers (correct)
  • The lack of public support
  • The presence of MNEs

    • What is a characteristic of Italy and Greece in terms of economic action?

  • A strong presence of MNEs
  • A dominant private sector
  • Clustering of economic action and a larger public sector (correct)
  • A high level of innovation and exports

    • What is a consequence of widespread corruption in a society?

  • Improved government efficiency
  • Increased social capital
  • Reduced burden on the poor
  • Increased poverty and populism (correct)

    • What is a key factor in determining the effectiveness of anti-corruption reforms?

    <p>Poverty reduction strategies</p> Signup and view all the answers

    What is a characteristic of weak institutions?

    <p>Beliefs in unchecked executive power</p> Signup and view all the answers

    What is a reason why people in Italy and Greece may not want a cashless society?

    <p>They do not trust the government to use tax money effectively</p> Signup and view all the answers

    What is a consequence of a society with weak institutions and strong firms?

    <p>Increased corruption and burdens on the poor</p> Signup and view all the answers

    What is a key difference between strong and weak institutions?

    <p>The level of corruption and bribery</p> Signup and view all the answers

    What might be a reason why Chinese workers do not consider housing by their employer as a limitation of freedom?

    <p>They value security over independence</p> Signup and view all the answers

    What is a consequence of losing a job in the Chinese situation?

    <p>Loss of housing and having nowhere to go</p> Signup and view all the answers

    What is a possible explanation for the difference between Chinese and UK workers' attitudes towards housing and employment?

    <p>Cultural differences in values and expectations</p> Signup and view all the answers

    What is the impact of a forced decision on a person's enjoyment of things?

    <p>It has a negative impact, as it affects the way people enjoy things</p> Signup and view all the answers

    What is a possible reason why Chinese workers may want to live independently?

    <p>They want to experience the freedom of living on their own</p> Signup and view all the answers

    What is the significance of the distinction between 'want to' and 'have to' in the context of decision-making?

    <p>It emphasizes the role of autonomous choice in decision-making</p> Signup and view all the answers

    What is the primary role of the United States in the global economy, according to the given information?

    <p>Protecting American interests through military power and influence in international institutions</p> Signup and view all the answers

    What is the significance of Wall Street in the financial world?

    <p>It is a bellwether for other stock markets, with a significant market capitalization</p> Signup and view all the answers

    What is the market capitalization of the NYSE in September 2023?

    <p>$25.24 trillion</p> Signup and view all the answers

    What percentage of profits are used for dividends or share buybacks, according to the given information?

    <p>A high percentage of profits</p> Signup and view all the answers

    What is the consequence of economic turmoil in the labor market?

    <p>Dismissal and job losses</p> Signup and view all the answers

    What is the role of institutional investors in the financial markets?

    <p>They are not inclined to direct the companies they own</p> Signup and view all the answers

    What is the effect of high frequency of takeovers in the financial markets?

    <p>It disciplines underperforming companies</p> Signup and view all the answers

    What is the market capitalization of BlackRock’s assets under management in Q3 2023?

    <p>$9.1 trillion</p> Signup and view all the answers

    What is a common issue with forcing vaccinations on staff?

    <p>It lowers vaccination rates.</p> Signup and view all the answers

    What was the outcome of the Supreme Court's decision on Covid mandates by Biden in 2021?

    <p>90% of federal workers got a first dose before the deadline.</p> Signup and view all the answers

    Why do private companies continue to force vaccinations despite the Supreme Court's decision?

    <p>Because they want to promote a healthy workforce.</p> Signup and view all the answers

    What is a common pay practice in the US business system?

    <p>Performance-based pay.</p> Signup and view all the answers

    What is a common guideline in the US business system?

    <p>Relative pay scales (e.g., above the median).</p> Signup and view all the answers

    What is a growing trend in the US business system?

    <p>Growing reliance on forced distribution (10-80-10).</p> Signup and view all the answers

    What is an example of a benefit offered by some US companies?

    <p>Stock option plans.</p> Signup and view all the answers

    What is a common practice in US multinational enterprises (MNEs)?

    <p>Applying grade systems for all kinds of workers.</p> Signup and view all the answers

    What was the estimated economic impact of the strike on the government?

    <p>$6 billion</p> Signup and view all the answers

    Which of the following was a result of the WGA strike?

    <p>A 5% pay increase for writers in the first year</p> Signup and view all the answers

    What was the purpose of Joe Biden's Inflation Reduction Act (IRA) in 2022?

    <p>To incentivize people to buy EVs from certified producers</p> Signup and view all the answers

    Why did Joe Biden openly dislike Tesla?

    <p>Because Tesla did not unionize its workers</p> Signup and view all the answers

    What was the result of the Ultium battery plant vote in Ohio?

    <p>The plant voted to unionize</p> Signup and view all the answers

    What was the goal of Joe Biden's plan to have 500,000 charging stations on US highways in 2030?

    <p>To increase the number of EVs on the road</p> Signup and view all the answers

    What was the outcome of the SAG-AFTRA strike?

    <p>A 7% pay increase for actors</p> Signup and view all the answers

    Why did the US Treasury chief Janet Yellen visit Chile?

    <p>To discuss climate and energy goals with Chile</p> Signup and view all the answers

    What was the impact of the strike on the cinemas?

    <p>The strike resulted in a loss of income for the cinemas due to delayed movie releases</p> Signup and view all the answers

    What was the outcome of the United Auto Workers strike against Ford, GM, and Stellantis?

    <p>A 11% wage increase for workers</p> Signup and view all the answers

    Study Notes

    Weak Institutions and Weak Firms

    • Italy and Greece have weak institutions and weak firms, characterized by:
      • Local state laws and clustering of economic activity
      • Larger public sector vs. private sector
      • Less MNEs, more family businesses and local HRM practices
      • Less innovation and exports
      • Missing tax base
      • Beliefs of unchecked executive power

    Corruption

    • Corruption matters:
      • Burden of bribery is borne by the poor
      • Corruption decreases with stronger institutions fighting corruption
      • Less corruption with high social capital
      • More corruption with strong political networks
      • Anti-corruption reforms should include poverty reduction strategies

    Our First Model: Strong and Weak

    • Four possible scenarios:
      • Strong institutions and weak firms
      • Weak institutions and strong firms
      • Strong institutions and strong firms
      • Weak institutions and weak firms

    Comparative Approach

    • Understand what is going on in a nation by considering the past
    • People act rationally in their own context
    • Case study: UK and China
      • Chinese workers may value security and expect employer-provided housing
      • Chinese workers may not consider housing by the employer as a limitation of freedom

    Financial Markets

    • Wall Street is dominant in the financial world:
      • $25.24 trillion market capitalization in September 2023
      • 50% market share worldwide
      • BlackRock's assets under management: $9.1 trillion at Q3 2023
      • Berkshire Hathaway held $1 trillion at Q3 2023

    The Labour Market

    • Relatively speaking, the US labour market is deregulated:
      • Fewer external obligations for companies
      • Equal employment opportunities are the exception
      • Consequence: economic turmoil = dismissal

    The US Business System

    • Pay and performance:
      • Grade systems for all kinds of workers
      • Individual performance-based pay
      • Stock option plans for many
      • Growing reliance on forced distribution

    Strikes

    • Negative impact of strikes:
      • Cost of $500 million to Warner Bros
      • Delay in movie production and release
      • Hurt to cinemas and the government
      • Estimated economic impact of $6 billion

    Case: United Auto Workers

    • Strike against Ford, GM, and Stellantis:
      • First time the union strikes against all three at once
      • 145,000 workers employed, producing 50% of vehicles annually
      • The union chose to strike in the most profitable factories
      • Deals made with Ford, GM, and Stellantis:
        • 25% wage increase over 4.5 years
        • $5,000 ratification bonus
        • End to the two-tier system

    Background

    • Joe Biden's Inflation Reduction Act (IRA) in 2022:
      • Incentives for people to buy EVs
      • $7,500 tax credit for an EV from a certified producer
      • $4,500 additional tax credit if the EV was made with unionized labour
      • Targeted car manufacturers that have no union, like Tesla

    Joe Biden's Support for the UAW

    • Openly pro-union:
      • Used Ford, GM, and Stellantis to push Tesla into unionizing
      • Did not invite Elon Musk to the White House
      • Supported the UAW during the strike
      • Joined the picket lines in Michigan

    HR in US MNEs: Workplace Diversity

    • American Civil War (1861-1865):
      • Abolishing slavery
      • Civil rights movements:
        • 1865-1896, 1896-1954, and 1960s
        • 1954: Supreme Court declares laws legalizing racial segregation and discrimination as unconstitutional
        • Civil Rights Act of 1964 banning all discrimination based on race
    • Managing workforce diversity:
      • Focus on gender diversity
      • Gender balance: Resistance to quotas indicates lack of genuine concern

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    Description

    This quiz covers the impact of industrial relations on international business, including the role of strikes, temporary workers, and institutional frameworks in different countries.

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