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:

Receive Payments

The process of collecting money from customers or clients against invoices or bills, marking them as paid.

Pay Bills

The action of settling obligations or invoices owed to suppliers by a business, often through a specific module or function within accounting software.

Financial Institutions

Organizations that provide financial services, such as banks, credit unions, and insurance companies.

Tax Agencies

Governmental organizations responsible for the administration and collection of taxes and enforcement of tax laws.