Which of the Following Statements Accurately Expresses Evidence That Globalization

question 15

Multiple Choice

Which of the following statements accurately expresses evidence that globalization does not encourage a "race to the bottom" in labor standards?

• A) The wages paid by multinational firms to their poor countries' subsidiaries are higher than the wages paid in rich countries.
• B) Poor countries that participate in globalization have quickly become rich.
• C) Multinational firms tend to pay higher wages than local firms, but they tend to provide lower benefits than existed in the country prior to globalization.
• D) Multinational firms must sign contracts with the IMF stating that they will offer exceptional worker benefits.
• E) Multinational firms tend to pay higher wages than local firms and tend to provide greater benefits for workers than existed in the country prior to globalization.

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Definitions:

Interest Rate

The interest rate is the percentage charged on the total amount borrowed or invested, representing the cost of borrowing or the earning from an investment over a specified period.

Loan

A financial amount given as a loan, anticipated to be returned with interest.

Rate of Return

The increase or decrease in the value of an investment during a set timeframe, represented as a percent of the investment's original price.

Equivalent Value

The worth of an item, service, or amount in terms of another, often used in comparisons or exchanges.