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Trade Unions and Multinational Corporations

Question: Trade unions can limit the strategic choices of multinational corporations in three ways:
1) By influencing wage levels to the extent that cost structures may become un-competitive.
2) By constraining the ability of multinationals to vary employment levels at will.
3) By hindering in the prevention of global integration of operations of multinationals.

Can you mention them briefly?

Solution Preview

The first way trade unions can limit the strategic choices of multinationals is by influencing wage levels to the extent that cost structures may become un-competitive. Even though labor costs are becoming less important in relation to other costs, they are still significant in determining cost competitiveness in many industries. If multinationals are unable to properly manage their wage levels, they may experience many disadvantages related to labor costs which in turn, may also hinder their ...

Solution Summary

This solution contains a detailed description of the three ways trade unions can limit the strategic choices of multinational corporations. The solutions contains approximately 300 words of text.

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