Stewart Wilkinson, CEO of Acme Products, said to his Executive VP of Marketing, "I'm struggling with your proposal to expand our manufacturing operations in China. ________ create a paradox. On one hand, new middle-class consumers in China are purchasing more products, both foreign and domestic. However, at the same time, low-cost manufacturers are moving out of China to set up operations in lower-wage countries."

Question

Quizplus · Accepted Answer

The statement before the blank specifically mentions "new middle-class consumers in China are purchasing more products," which indicates rising incomes rather than declining incomes or slow-growing numerical increases. Lack of tariffs and years of economic contraction are not mentioned in the statement and do not directly relate to the paradox mentioned. Therefore, the best choice is D, rising incomes, as it provides a plausible explanation for the paradox mentioned.

Stewart Wilkinson, CEO of Acme Products, Said to His Executive