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24

International Labor Relations: Labor’s Concerns about MNEs

A key concern is the degree to which organized labor can limit an MNE’s operational and strategic choices.  

Labor claims it is disadvantaged in dealing with MNEs because:

it is very difficulty to get complete information regarding MNE operations and to interpret their financial data

MNEs can manipulate product and resource flows

MNEs can easily switch value-adding activities to other countries and/or regions

the scale and complexity of MNE operations make it hard to identify the location of decision-making authority

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