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.

Question

Quizplus · Accepted Answer

Competition from nonunion firms and foreign producers can limit a union's ability to negotiate higher wages because these competitors may offer lower-cost alternatives, reducing the union's bargaining power.

How Does Competition from Nonunion Firms and Foreign Producers Affect