The Fact That Wages Are Lower in Vietnam Than in the United

question 36

Multiple Choice

The fact that wages are lower in Vietnam than in the United States or Europe, yet there are often waiting lines of people seeking work at a multinational firm in Vietnam, is evidence that

• A) Vietnamese workers are exploited.
• B) these jobs are better than alternatives available to the Vietnamese workers.
• C) the government of Vietnam needs to raise the minimum wage.
• D) wages are too high in the United States and Europe.
• E) all of these are true.

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Definitions:

Operating Income

The profit realized from a business's core operating activities, excluding costs and revenues from non-operating activities.

Variable Costing

An accounting methodology that only includes variable production costs (costs that change with the level of output) in product costs.

Absorption Costing

An accounting method that includes all of the costs associated with manufacturing a product in the cost of that product.

Operating Income

Earnings before interest and taxes (EBIT), a measure of a company's profitability from its operations.