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 makes it easier for the union to achieve wage increases.
B) Such competition reduces the ability of a union to achieve wage increases.
C) Such competition does not affect the ability of a union to achieve wage increases.
D) Such competition will increase the strength of a union if it produces a product sold in the domestic market but will reduce the strength of the union if it produces an export product.