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If union contracts raise wages above competitive levels, what might be one negative outcome?

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Answer:

Companies will move overseas to escape unions and hire cheaper labor.

Step-by-step explanation:

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User SteD
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The negative result if the union contracts increase wages that are above the competitive levels is that the companies that belong to the union would move to a different location, or specifically, overseas. Through this, they can hire less expensive labor. 
User Puru
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