Question

Human Resource Management:

Explain the effect of farm worker unionization on the export potential of farm products in the international market.

Answer 1

When farm workers will be unionized, they will bargain more from the owners and wage rate can be higher. Apart from better wage rate they will also demand other benefits and amenities to provide which generally not present in farm labor market due to absence of organization and spatial pattern of demand. This will increase the input cost and hence farmer will demand more price for the product. The increase in final price of the agricultural product will shed away the competitive advantage of the product from the domestic countries. In international market demand of a product is defined by the price and supply level. When product from different countries will available at lower price, its demand will increase, and the demand of the farm labor unionized country will be less.