Newly Formed Trade Unions Raise Wages for Workers in Country

question 76

Multiple Choice

Newly formed trade unions raise wages for workers in Country X where cars are manufactured. The higher wages increase costs for the car manufacturers who relocate to Country Y where labor costs are lower. Car manufacturing begins to thrive in Country Y relative to Country X. Which answer best describes the concept highlighted by this scenario?

• A) Changes in one market can affect markets and people in other regions of the world.
• B) Trade unions always cause industries to collapse.
• C) The links between markets are weakening over time.
• D) Manufacturing industries are the only industries where markets are linked well.

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Definitions:

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