It Is a Known Fact That the Same Multinational Company

question 72

Multiple Choice

It is a known fact that the same multinational company may pay lower wages to its workers in a developing country than to those in an industrialized country. Why is this not considered an evidence of worker exploitation?

• A) Rich people deserve higher pay.
• B) The workers in developing countries have lower consumption levels than those in developed countries, thus they get lower wages.
• C) Local wages in developing countries are generally lower than in industrialized countries, with or without globalization.
• D) Workers in developing countries have higher benefits, making the overall wages about the same in both kinds of countries.
• E) Most workers in developing countries are comparatively younger, and they get lower wages because of their lack of experience.

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Definitions:

Cash Payments

Transactions in which payment for goods or services is made in cash at the time of the transaction.

Liabilities

Financial obligations or debts that a company owes to others, which must be settled over time through the transfer of economic benefits.

Debts

Obligations or amounts of money that are owed by a person, company, or country to creditors.

Accounts Payable

A liability account that represents amounts a company owes to suppliers or creditors for goods and services received but not yet paid for.