Newly Formed Trade Unions Raise Wages for Workers in Country

Multiple Choice

Newly formed trade unions raise wages for workers in Country X, where cars are manufactured. The higher wages increase the costs for the car manufacturers, who then relocate to Country Y, where labor costs are lower. Car manufacturing begins to thrive in Country Y relative to Country X. Which answer BEST describes the concept highlighted by this scenario?

A) Changes in one market can affect markets and people in other regions of the world.
B) Trade unions always cause industries to collapse.
C) The links between markets are weakening over time.
D) Manufacturing industries are the only industries where markets are linked well.