Question

Theo's policy of paying impoverished cacao farmers in Congo three times the going rate is designed to: a.benefit farming communities in Congo. b.benefit the company's bottom line. c.fund the "third sector"—the nonprofit sector. d.outsource jobs.

Answer 1

Answer:

A) Benefit farming communities in Congo

Explanation:

A policy of paying more than strictly necessary to poor farmers in Congo directly benefits those communities because it allows them to have more income available.

None of the other three answers address this effect. B) is wrong because the firm is incurring in higher wage costs, which does not benefit the company's bottom line. C) is wrong because farming is not part of the third sector of the economy, it is part of the first sector or primary sector, and D) is wrong because we do not have enough information to assume that those jobs in Congo were previously located somewhere else.