Michael is the vice president of manufacturing for a textile firm that is opening up a plant in India. Michael must decide how to pay the hourly workers in the Indian plant. After much consultation with his peers at other companies, he decides to follow a common practice. Which of the following options is it most likely to be?
A)paying wages negotiated with the local community leaders in India
B)paying local Indian wages
C)paying higher than local Indian wages, but lower than the equivalent Canadian wages
D)paying the equivalent Canadian wages

Question

Quizplus · Accepted Answer

It is most likely that Michael will choose to pay local Indian wages as this is a common practice followed by many companies while setting up operations in other countries. Paying wages negotiated with local community leaders or paying higher than local Indian wages can lead to issues and conflicts with the local workforce, and paying Canadian wages may not be feasible or sustainable in the long run. Thus, paying local Indian wages seems to be the most logical and practical option.

Michael Is the Vice President of Manufacturing for a Textile