Final answer:
True, the pressure on a multinational corporation by a local union strike can be reduced since the MNC's international operations can maintain productivity and profits despite local disruptions. Globalization allows MNCs to distribute operations, mitigating risks associated with local union strikes.
Step-by-step explanation:
Pressure on a multinational corporation (MNC) by a local union strike may be reduced because MNC operations in other countries can continue to generate products and profits. This statement is generally considered true. MNCs operate in multiple countries which means they have the flexibility to mitigate the impact of local disturbances like union strikes. While a strike might disrupt operations at one location, an MNC has the advantage of diversified geographical operations which can sustain production and maintain profitability.
For instance, if a union in the United States pressures a corporation, the negative effects on productivity and financial performance may be lessened by the corporation's ongoing operations in other countries with less union influence or cheaper labor. This dynamic has contributed to a globalization that can sometimes weaken the bargaining power of local unions and can affect local employment practices.
Additionally, multinational corporations bring benefits such as higher wages and infrastructure investments in developing countries. However, they can also be seen as contributing to unemployment in developed countries like the U.S. by seeking cheaper labor abroad, thereby perpetuating a cycle of outsourcing that affects domestic job markets.