The major factor leading to multinational firms to move towards a more centralized coordination of their internal labor relations functions is globalization (Ellem et al., 2020). This is because it is important to ensure that the workers of the labor unions do not try to exploit the management or the employer in future. Moreover, there has to be a balance developed and maintained by the multinational firms so that the workers of the labor unions can be satisfied as well as the management and the employer of every multinational firm. The target markets in the global world are expanding for which there has to be some form of control shown over the labor relations by the management of the multinational firms.