Increase wages for its members
: Industries with trade unions tend to havehigher wages than non-unionised industries.
: In the face of Monopsony employers,Trades Unions can increase wages and increase employment. Monopsonyemployers are those who have market power in setting wages and employingworkers. Traditionally, monopsonies occur when there is only 1 firm in a town,or type of employment. However, in modern economies, many employershave a degree of market power (monopsony).
: Trades Unions can also protect workers fromexploitation, and help to uphold health and safety legislation. Trades unionscan give representation to workers facing legal action.
: Trades Unions can help to negotiate productivity deals.This means they help the firm to increase output; this enables the firm to beable to afford higher wages. Trades unions can be important for implementingnew working practices which improve productivity.
Important for Service Sector
: Modern economies have seen a fall in tradeunion power. This is because of a decline in manufacturing and rise in servicesector employment. Service sector jobs tend to more likely to be part timeand temporary; unions are needed to protect workers in these kind of jobs.
Demerits of International Trades Unions:
: If labor markets are competitive, higher wages willcause unemployment. Trades unions can cause wages to go aboveequilibrium through the threat of strikes etc. However, when the wage isabove the equilibrium it will cause a fall in employment.
Ignore non Members
: Trades unions only consider the needs of itsmembers; they often ignore the plight of those excluded from the labor markets, e.g. the unemployed.
: If unions go on strike and work unproductively (work torule) it can lead to lost sales and output. Therefore their company may go outof business and be unable to employ workers at all.
Discuss the impact of culture on International Business?Ans. International Marketing and Culture: Culture is the way that we do things aroundhere. Culture could relate to a country (national culture), a distinct section of thecommunity (sub-culture), or an organization (corporate culture). It is widely acceptedthat you are not born with a culture, and that it is learned. So, culture includes all thatwe have learned in relation to values and norms, customs and traditions, beliefs andreligions, rituals and artifacts (i.e. tangible symbols of a culture, such as the SydneyOpera House or the Great Wall of China).