Primo Is a Multinational Enterprise Based in California That Manufactures

question 74

Multiple Choice

Primo is a multinational enterprise based in California that manufactures and sells affordably priced athletic shoes in retail stores around the world.A Primo manufacturing subsidiary in China employs over 20,000 locals.Primo executives recently learned of human rights violations at the firm's China subsidiary.Workers had been forced to work more than 60 hours each week and minimum wage laws were regularly ignored.As a result, Primo executives need to decide if operations in China should be discontinued.Which of the following, if true, would best support a decision by Primo to remain in China?

• A)Primo becomes SA8000 certified.
• B)Sales of Primo's competitors drop sharply.
• C)U.S. manufacturing jobs decrease in number.
• D)More service sector jobs become available in China.

---

Definitions:

Progressive

In economics, refers to taxation or policies that proportionally take more from those who have more income or wealth.

Perfectly Elastic

Describes a situation in which the quantity demanded or supplied of a good responds infinitely or extremely to changes in its price.

Excise Tax

A tax applied on specific goods, such as tobacco and alcohol, usually to discourage their use or raise government revenue.

Excise Tax

A tax charged on specific goods and services, such as alcohol, tobacco, and gasoline, usually to discourage their use or generate revenue.