It is a known fact that the same multinational company may pay ...

[daltonest1984]

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 2

The greater the magnitude of the external benefits of production,
 a. The larger is the deadweight loss from underproduction.
 b. The greater would be the optimal subsidy.
 c. The further the private market solution ignoring those benefits would deviate from the socially efficient level of output.
  d. All of the above are true

[alexanderhamilton]

Answer to Question 1

c

Answer to Question 2

d