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Suppose you work for a multinational firm and are posted to Bogota, Colombia. After renting a house in a posh neighborhood, you hire a full-time
Suppose you work for a multinational firm and are posted to Bogota, Colombia. After renting a house in a posh neighborhood, you hire a full-time maid to perform household chores, a common practice among wealthy Colombians. A colleague at work tells you local maids are typically poor women who live in Bogota’s slums and earn about $200 a month. As an executive, you feel guilty about paying such a cheap wage when you can afford much more. But for cultural and socioeconomic reasons, your colleague insists you cannot pay more than the going rate. Doing so might embarrass your maid and risk upsetting the economic balance in her community. Analyze this dilemma. Do you pay your maid the customary local rate or a higher wage? Justify your decision. Can you think of any creative solutions to this dilemma?
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