Question

Which of the following is NOT true about the practices of Japanese MNCs in their operations in the United States?

a. It is much easier for labor to organize the operation of a Japanese MNC than it is a U.S.-based firm.
b. Japanese companies do not adopt the lifetime employment concept.
c. Use layoffs to adjust to a shortfall in demand for workers.
d. Even though Japanese MNCs do transfer Japanese practices to U.S. facilities, the truth is that employment practices still tend to be similar to those of U.S.-based firms.
e. Language and cultural barriers can present a big problem for Japanese managers of U.S. operations.

Answer 1

The NOT true statement about Japanese MNC practices in the U.S. is that they do not adopt the lifetime employment concept, as they typically avoid layoffs. Japanese MNCs adapt to local contexts and align with U.S. firms' practices over time, despite challenges like language and cultural barriers.

Step-by-step explanation:

Regarding the question of which statement is NOT true about the practices of Japanese Multinational Corporations (MNCs) in their operations in the United States, the correct answer is (b) Japanese companies do not adopt the lifetime employment concept. In reality, Japanese firms are typically hesitant to layoff workers, often featuring practices like lifetime employment and avoiding dismissals in their domestic operations, which can be carried over to their international branches to varying extents. It's commonly recognized that while Japanese MNCs may bring some of their practices to the U.S., they also adapt to local contexts and employment practices tend to align with those of U.S.-based firms over time. Moreover, challenges such as language and cultural barriers do indeed present issues for Japanese management in U.S. operations, and it's not necessarily easier for labor to organize within Japanese MNCs compared to U.S. firms.