How do companies usually set their wage rates when they commence operations in foreign countries?
A) at the average of the prevailing wage rates for local companies
B) at, or slightly below, the prevailing wage for local companies
C) as low as they can, given the local unemployment rates
D) at, or slightly higher than, the prevailing wage for local companies

Question

Quizplus · Accepted Answer

Companies often set wages at or slightly higher than the prevailing local rates to attract skilled workers and establish a competitive presence in the new market.

How Do Companies Usually Set Their Wage Rates When They