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15 Feb 2020, 07:44
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US automotive companies are having difficult time competing with car manufacturers from South Korea. US manufacturers have proposed to significantly lower wages of their employees in order to compete with the Korean manufacturers because wages constitute approximately 30% of automobile production costs.
Which of the following, it true, is the strongest argument against the proposal to lower wages?
A. Lowering wages will likely cause the best workers to leave, lowering quality of the final product, which would in turn lower sales and market share.
B. Raw material, such as steel, constitute 25% of the cost of an automobile. Their price is determined by the market and not easily influenced.
C. US automakers have recently made some gains on foreign manufacturers and recaptured part of their previous market share.
D. US workers' wages are 25% higher than those of workers of South Korea.
E. US auto manufacturers have recently increased their spending on advertising.
Source: 800Score
Which of the following, it true, is the strongest argument against the proposal to lower wages?
A. Lowering wages will likely cause the best workers to leave, lowering quality of the final product, which would in turn lower sales and market share.
B. Raw material, such as steel, constitute 25% of the cost of an automobile. Their price is determined by the market and not easily influenced.
C. US automakers have recently made some gains on foreign manufacturers and recaptured part of their previous market share.
D. US workers' wages are 25% higher than those of workers of South Korea.
E. US auto manufacturers have recently increased their spending on advertising.
Source: 800Score
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15 Feb 2020, 10:14
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Kinshook
Discussed here: usa-automotive-companies-are-having-a-difficult-time-competing-with-car-manufacturers-249390.html?fl=similar
Archived Topic
Hi there,
This topic has been closed and archived due to inactivity or violation of community quality standards. No more replies are possible here.
Where to now? Join ongoing discussions on thousands of quality questions in our Critical Reasoning (CR) Forum
Still interested in this question? Check out the "Best Topics" block above for a better discussion on this exact question, as well as several more related questions.
Thank you for understanding, and happy exploring!
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