Economics 2281 · O Level · Trade unions

Trade unions — practice question

Trade union membership is falling in some countries, yet it is rising in China. Workers’ industrial action is becoming more frequent in China, as workers are pushing for higher wages. A strike was recently held at a car factory in South China, which was owned by a Japanese multinational company.
(a)[2]

Define the term ‘multinational company’.

(b)[4]

Explain why governments may discourage strikes.

(c)[6]

Analyse three reasons why trade union membership may fall in a country.

(d)[8]

Discuss whether an increase in the wages paid by a firm would reduce its profits.

Worked solution & mark scheme

This 20-mark question has a full step-by-step worked solution and mark scheme. One marking point: a company whose headquarters/is based in one country

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