There are 3 ways trade unions can constrain the strategic choices of multinationals:
- Unions can influence wages, which will have implications for labour costs.
- Unions can be involved in strike actions, and impact productivity .
- Labour unions may affect changes in government policy via lobbying.
Can you explain them briefly?© BrainMass Inc. brainmass.com December 15, 2020, 9:41 pm ad1c9bdddf
Unions are a constraint from the perspective of wages because unions can force multinationals to secure a certain level of wages for the employees, which means that some of the benefits associated with low cost manufacturing in nations with comparative advantage in terms of labor cost will be offset, thus reducing the attractiveness of ...
This solution explains three ways trade unions can constrain the strategic choices of multinationals.