Question

14. Unions became much less effective in the 1990s because of

	a.	greater competition in domestic markets.
	b.	increased foreign competition.
	c.	downsizing by American firms.
	d.	All of the above are correct.

Answer 1

Option D. All of the above are correct.

• US labour unions gained popularity in US due to their strong position and their success in bringing equality among the workers in the organizations.
• But in late 1990s, U.S faced a decline in labour unions and they became less effective.
• This is because in 1990s domestic markets faced Increased competition from foreign competitor's.
• As a result of this Increase in competition level, American firms turned to outsourcing and downsizing practices.