Stewart Wilkinson, CEO of Acme Products, said to his Executive VP of Marketing, "I'm struggling with
your proposal to expand our manufacturing operations in China. ______ create a paradox. On one
hand, new middle-class consumers in China are purchasing more products, both foreign and domestic.
However, at the same time, low-cost manufacturers are moving out of China to set up operations in
lower-wage countries."
Declining incomes
Rising incomes
Slow-growing numerical increases in the middle class
Years of economic contraction
Lack of tariffs
