Answer to Question 1
European MNCs are more likely than U.S. or Japanese firms to adopt a geocentric approach to staffing because the approach is encouraged by the European Union to improve the mobility of workers and managers throughout member countries. Japanese firms prefer the ethnocentric approach in part because it facilitates their consensus-oriented approach to decision making. In the United States, union membership has been steadily declining, and now constitutes less than 15 percent of the labor force. Formal labor agreements are considered binding contracts and are enforceable in a court of law. Negotiations are formal and can be hostile. In contrast, union membership is very important in Europe, where unions are politically aligned. Consequently, union power is tied to the current status of the political party. Work stoppages are used to gain public support for union demands. Labor relations in Japan are very different. Unions are created and run by the firm, and relations between management and labor are cordial. The goal is to work toward their best mutual interests. Confrontation and hostility are discouraged, and strikes are relatively rare. Labor relations in the United States are heavily regulated by various laws, and both the actions of management toward labor and the actions of labor toward management are heavily restricted.
Answer to Question 2
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