It is a known fact that the same multinational company may pay lower wages to its workers in a developing country than to those in an industrialized country. Why is this not considered an evidence of worker exploitation?
A) Rich people deserve higher pay.
B) The workers in developing countries have lower consumption levels than those in developed countries, thus they get lower wages.
C) Local wages in developing countries are generally lower than in industrialized countries, with or without globalization.
D) Workers in developing countries have higher benefits, making the overall wages about the same in both kinds of countries.
E) Most workers in developing countries are comparatively younger, and they get lower wages because of their lack of experience.

Question

Quizplus · Accepted Answer

The fact that multinational companies pay lower wages to workers in developing countries can be attributed to the lower local wages in those countries, which exist regardless of globalization. This is not necessarily evidence of worker exploitation as it is a part of the local economy and not a result of globalization alone.

It Is a Known Fact That the Same Multinational Company