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

Verified Answer :

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.

Answer:

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

Explanation:

jus got 100% on the test.