How Does Competition from Nonunion Firms and Foreign Producers Affect

question 108

Multiple Choice

How does competition from nonunion firms and foreign producers affect the ability of a union to increase the wages of its members?

• A) Such competition reduces the ability of a union to achieve wage increases.
• B) Such competition does not affect the ability of a union to achieve wage increases.
• C) Such competition will increase the strength of a union if it produces a product sold in the domestic market but reduce the strength of the union if it produces an export product.
• D) The effect of this type of competition will be entirely dependent on the elasticity of demand for labor in the domestic market.

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Definitions:

Circuit Switching

A method of communication where a dedicated channel or circuit is established for the duration of a transmission between two endpoints.

PGP

Pretty Good Privacy, an encryption program that provides cryptographic privacy and authentication for data communication.

Handshaking

In a connection-oriented protocol, the process of exchanging control packets before exchanging data packets.

Packet Switching

A method of grouping data into packets that are transmitted over a network and can travel independently to their destination.