Final answer:
True, it is uncommon for MNCs to relocate production to intimidate local unions; MNCs weigh many other factors more heavily when deciding factory locations.
Step-by-step explanation:
The statement that it is relatively rare for MNCs to shift production to other countries in order to intimidate local unions is true. Firms consider numerous factors beyond just labor costs and unionization when determining the location of a new factory. These factors include: financial incentives, costs of labor and capital, proximity to reliable suppliers and customers, transportation quality, communication and power infrastructures, tax levels, and local government efficiency and integrity. The cost related to environmental regulation is only a small percentage (1 to 2%) of the total costs faced by a large industrial plant. Therefore, the incentives to shift production are not significantly driven by the desire to intimidate labor unions or exploit weaker environmental regulations.