It discusses the working of trade unions and how it is affected by external factors in the industrial macro environment such as politics, supply and demand forces, and so on. The economic sphere of trade unionism is explored well by Colin Crouch (1982) who has adopted a rational-choice approach to understanding trade union activities. Under the rational approach, the author has tried to analyze the choices made by unions and their members as sensible individuals with little significance from sociological concepts of perception and attitude unless they refer to the rationality in union members. Crouch (1982) has mainly explored the different choices and trade-offs that union workers face, which is the main part of their activities. Another article, written by Andrew Oswald (1985), has explained the theoretical framework upon which the economics of trade unions are based. The author explores the literary trends which focused on varying concepts of labor union economics as the subject drew more and more attention from western scholars. This paper seeks to examine and analyze the infrastructure of trade unions along with its sociology and economics by means of theoretical foundations.
Unions have been analyzed extensively, particularly as they operate in economic environment. Efforts started during the 1980s where increasing amount of attention was being given in order to understand labor markets and the behavior of unions. Since economics, as a discipline, is a social science, it derives its theories from human behavior in the external environment. Economic theory is shaped by the behavior of central actors and the forces of supply and demand. Labor markets operate in the same macro environment, which is why they are also subject to the same external forces. The way union workers respond to the economic changes and other environmental cues is critical to understanding the economical