Which of the Following Statements Accurately Expresses Evidence That Globalization

question 63

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 than existed in the country prior to globalization.

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Definitions:

Marginal Cost

Marginal cost is the cost of producing one additional unit of a good or service, which includes all variable costs associated with its production.

Average Cost

The total cost divided by the quantity produced, often used to assess efficiency or profitability.

Standard Meals

Refers to set menu options in a food service establishment that are regularly available and usually priced at a fixed rate.

Producing

The act of creating, manufacturing, or generating goods or services.