Critics maintain that labor unions can stifle international competitiveness for a business firm when they
A) set wages and benefits above those in a competitive market
B) impose restrictive work rules that reduce labor productivity and innovation
C) emphasize seniority over merit in promotion and pay
D) all of the above

Question

Quizplus · Accepted Answer

Labor unions can potentially stifle international competitiveness for a business firm in multiple ways. Setting wages and benefits above those in a competitive market can create an additional financial burden for the company, making it less competitive compared to others in the same industry. Restrictive work rules imposed by unions can also reduce labor productivity and innovation, limiting a company's ability to adapt and compete on a global scale. Similarly, if unions prioritize seniority over merit in promoting and paying employees, it can lead to a less efficient and effective workforce, ultimately negatively impacting a business's ability to compete.

Critics Maintain That Labor Unions Can Stifle International Competitiveness for a Business