A principal concern of domestic unions about multinational firms is that a company can counter its bargaining power with
A)work schedules tied to global rather than domestic standards.
B)wage rates tied to global rather than domestic standards.
C)the power to import labor from abroad.
D)the power to move production to another country.
E)the retention of low-skilled tasks in home country.

Question

Quizplus · Accepted Answer

Domestic unions are concerned that multinational firms can move production to other countries where labor is cheaper, which would reduce the bargaining power of the unions in negotiating for better wages and working conditions. This is known as the threat of offshoring, which can make it difficult for unions to achieve their goals and protect the interests of their members. Therefore, option D is the best choice as it directly relates to the concern of domestic unions.

A Principal Concern of Domestic Unions About Multinational Firms Is