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Organized labor can significantly constrain the choices firms make with respect to location.International firms often choose to locate new facilities in places where there is relative labor peace and harmonious working relations.Labor can also raise objections and threaten disruptive behavior if a firm decides to move some activities to other locations, which in some cases only reinforces the need for relocating the activities.However, none of these broader efforts have been very successful.International businesses have the advantage of being able to provide or take away jobs, and in today’s labor market that gives them considerable power.As a condition of opening or expanding a facility, firms can negotiate favorable conditions with local unions and force unions to compete against each other for the gains in membership.

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