Over the past decade, R.J. Reynolds, a subsidiary of RJR Nabisco, has been establishing more production facilities overseas. In terms of labor, the advantage of this strategy is that
A) foreign unions are less demanding in contract negotiations.
B) foreign unions rarely go on strike.
C) labor unions are illegal in most foreign countries.
D) in most foreign countries, unions are highly regulated by the government.
E) labor is less unionized in foreign countries.

Question

Quizplus · Accepted Answer

The advantage of establishing production facilities overseas for labor is that labor is less unionized in foreign countries. This means that the company can potentially save on labor costs and avoid dealing with the complexities and costs associated with labor unions and collective bargaining. Foreign unions may also be less powerful and less likely to go on strike, but this is not always the case, and labor unions are not necessarily illegal in most foreign countries.

Over the Past Decade, R