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Home / Questions / Which of the following statements describes the long-run effects of global outsourcing? A

Which of the following statements describes the long-run effects of global outsourcing? A

Which of the following statements describes the long-run effects of global outsourcing?

A) Wages for U.S. workers will decrease but wages in other countries will increase.

B) Wages in all countries will remain the same as before the outsourcing.

C) Wages and employment will increase globally.

D) Wages will increase globally and employment will stay the same.

17) Which of the following statements is FALSE about the long-run effects of outsourcing?

A) Outsourcing allows countries to specialize in producing what they can produce most efficiently.

B) More goods and services can be produced than in the absence of outsourcing.

C) Globally wages will increase because of outsourcing.

D) Employment levels will decrease globally as the result of outsourcing.

18) Employment of labor in a country other than the firm's home country is called

A) employing guest workers.

B) outsourcing.

C) employing non-naturalized workers.

D) employing illegal aliens.

19) Economic analysis indicates the net long-run effect of outsourcing for the United States is likely to be

A) an increased demand for labor due to economic growth.

B)  a decreased in the demand for labor in the United States in the short run.

C) an increase in the supply of labor.

D) a decrease in the supply of labor.

20) When firms in a U.S. industry outsource some of their production,

A) both U.S. labor demand and U.S. wages in the industry fall

B) U.S. labor demand falls, but U.S. wages are not affected.

C) U.S. labor demand remains unchanged, but U.S. wages fall.

D) U.S. labor demand falls, but U.S. wages increase.

21) Suppose a U.S. computer company outsources its technical-support services to India.  This will cause

A) the demand for labor in the United States to fall, lowering U.S. wage rates, and the demand for labor in India to increase, increasing Indian wage rates.

B) the demand for labor in the United States to increase, lowering U.S. wage rates, and the demand for labor in India to fall, increasing Indian wage rates.

C) the demand for labor in the United States to fall, lowering U.S. wage rates, and the demand for labor in India to fall, decreasing Indian wage rates.

D) the demand for labor in the United States to increase, increasing U.S. wage rates, and the demand for labor in India to fall, decreasing Indian wage rates.

22) Explain the implications of outsourcing for employment and wages in the domestic and foreign labor markets.

Dec 10 2019 View more View Less

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