The Manager of Steel Works Learns of a New Technological

question 34

Multiple Choice

The manager of Steel Works learns of a new technological interdependency between the final stage of production and the distribution of the final product. If Steel Works currently contracts with another firm to distribute the product, which of the following is true?

• A)The manager has less of an incentive to integrate forward.
• B)The manager has less of an incentive to integrate backward.
• C)The manager has more of an incentive to integrate backward.
• D)The manager has more of an incentive to integrate forward.

---

Definitions:

Labor Contract

A formal agreement between employees and their employer detailing the terms and conditions of employment.

Contract Provisions

Specific clauses or terms included within a contract that outline the rights, duties, and conditions for the parties involved.

Unions

Organizations formed by workers in order to protect their rights, improve working conditions, negotiate wages, and address grievances with employers.

Labor-Management Relations

The interaction between workers, often represented by unions, and employers regarding workplace decisions and policies.