How Does Competition from Nonunion Firms and Foreign Producers Affect

question 87

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 makes it easier for the union to achieve wage increases.
• B) Such competition reduces the ability of a union to achieve wage increases.
• C) Such competition does not affect the ability of a union to achieve wage increases.
• D) Such competition will increase the strength of a union if it produces a product sold in the domestic market but will reduce the strength of the union if it produces an export product.

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Definitions:

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