Question

Outsourcing is:

a. when a firm employs labor outside the country in which the firm is located.
b. when the change in the price of a complementary input causes the demand for labor curve to shift in the opposite direction.
c. one of the factors that shifts the supply of labor curve.
d. the cost of using an additional unit of an input.

Answer 1

Answer: Option A

Explanation: Outsourcing can be defined as the business practice under which the company transfers its certain jobs to other labor force in foreign countries.

This system is majorly employed by the organisations because of low price labor in foreign countries.

From the above explanation we can conclude that option A is correct.