Final answer:
The claim that management can easily pass increased labor costs to consumers due to competition is false; heightened global competition and price elasticity of demand prevent this.
Step-by-step explanation:
The statement that pressure from domestic and international competition has increased management's ability to simply pass increased labor costs on to customers in the form of higher prices is false. The forces of globalization and advancements in communications and information technology have heightened competition, making it difficult for companies to increase prices without potentially losing market share.
Additionally, competition from firms offering better or cheaper products can significantly reduce a business's profits and may force it out of the market, negatively impacting workers' income and employment status. Furthermore, price elasticity of demand strongly influences whether a business can pass on higher costs to consumers or must absorb them to remain competitive.
The statement is False. Pressure from domestic and international competition actually makes it difficult for management to pass increased labor costs on to the customer in the form of higher prices. This is because customers have more choices and can easily switch to competitors offering lower prices. In order to stay competitive, many businesses try to absorb the increased labor costs or find ways to cut costs in other areas.