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International Firms That Move Manufacturing Operations to Low-Wage Countries Overseas

Question 30

Multiple Choice

International firms that move manufacturing operations to low-wage countries overseas are sometimes criticized for being "sweatshop employers." Which of the following is NOT a defense for an international firm that is taking advantage of the wage disparity between the U.S.and less-developed countries?


A) Even though the wages are lower in the less-developed host country than in the U.S., the host country employees are receiving higher wages than they would otherwise.
B) The jobs provided by the U.S. company reduce unemployment in the host country.
C) The host country employees receive specialized training that will enable them to emigrate to the U.S. for a better life.
D) The working conditions in the U.S- run manufacturing plant may not adhere to U.S. standards, but those standards may be better than those typical in the host country.

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