Labor Unions May Restrict MNC Strategic Options and Flexibility By

question 29

Multiple Choice

Labor unions may restrict MNC strategic options and flexibility by:

• A)limiting a company's ability to utilize effective employee involvement initiatives.
• B)closing down plants and transferring work to operations in other countries.
• C)increasing production in parallel operations in other countries.
• D)compensating employees indefinitely for remaining on strike, thus paralyzing local company operations.

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Definitions:

Extraction Costs

The expenses associated with the removal of raw materials from the earth or the harvesting of natural resources.

User Costs

Expenses incurred by consumers or firms for the use of assets, services, or capital, which can affect decisions on consumption or investment.

Price of Resource

The cost associated with acquiring, producing, or utilizing a resource, which may include materials, labor, or capital.

Optimal Extraction Level

The most efficient point at which a resource can be extracted or harvested to balance usage and sustainability over time.