Discussion
Statement: Should there be a ceiling on the salary of top executives of multinationals in our country?
Arguments:
1. Yes. Otherwise it would lead to unhealthy competition and our own industry would not be able to withstand that.
2. No. With the accent on liberalization of economy, any such move would be counter-productive. Once the economy picks up, this disparity will be reduced
Answer: E
In the absence of such a ceiling, the companies would be involved in a mutual competition of salaries, in a bid to attract the most competent professionals. So, argument I holds. Also, the prospects of increase in salary would encourage the officials to perform better in the interest of the company they serve, which would otherwise not be so if a ceiling is imposed. So, argument II also holds strong.
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