How Does Competition from Nonunion Firms and Foreign Producers Affect

Multiple Choice

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 reduces the ability of a union to achieve wage increases.
B) Such competition does not affect the ability of a union to achieve wage increases.
C) Such competition will increase the strength of a union if it produces a product sold in the domestic market but reduce the strength of the union if it produces an export product.
D) The effect of this type of competition will be entirely dependent on the elasticity of demand for labor in the domestic market.