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:

Capacity Utilization Analysis

The measurement of the extent to which an enterprise or a nation makes use of its installed productive capacity.

Temporary Employees

Workers who are hired on a non-permanent basis, typically to fill short-term needs of the employing organization.

Technological Innovation

The process of developing and introducing new technologies or improving existing ones to solve problems or enhance capabilities.

Turnover Reductions

Efforts or strategies aimed at decreasing the rate at which employees leave an organization and need to be replaced.