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.

Question

Quizplus · Accepted Answer

The statement that multinational firms tend to pay higher wages than local firms and provide greater benefits for workers than existed in the country prior to globalization shows that globalization does not encourage a "race to the bottom" in labor standards. This suggests that multinational firms are not merely seeking to exploit cheap labor in poor countries, but are willing to pay higher wages and provide better working conditions to attract and retain skilled workers.

Which of the Following Statements Accurately Expresses Evidence That Globalization