Why Do Firms Locate Production Overseas Rather Than Exporting Finished

question 86

Multiple Choice

Why do firms locate production overseas rather than exporting finished goods?

• A)Shipping costs
• B)Firms seek to extend corporate control overseas
• C)Imperfect factor markets
• D)all of the options

---

Definitions:

Agency Shop Agreements

Labor agreements that require employees to either join the union or pay a fee equivalent to union dues, even if they choose not to become union members.

Fair Representation

The legal duty of a union to represent all members impartially and effectively, especially in negotiations and grievance processes.

Superseniority

A privilege given to union officials that provides them higher priority over other workers in matters of layoffs and recalls, ensuring their positions are more secure.

Union Stewards

Representatives elected by union members to enforce the terms of labor contracts and address grievances.