The largest challenge to domestic unions comes from multinational firms, which can move some or all of their operations to another country, and this fact resulted in the development of international unions.

Question

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Multinational firms have the ability to move operations across borders to take advantage of lower labor costs, less stringent labor laws, or other economic benefits, which undermines the bargaining power of domestic unions. This challenge has indeed contributed to the development of international unions, aiming to coordinate efforts across borders to better negotiate with multinational corporations.

The Largest Challenge to Domestic Unions Comes from Multinational Firms