Question

What is one way US workers are affected when jobs are outsourced to less-developed countries? A. US workers are not affected when jobs are outsourced. B. US workers have to move internationally to do their jobs. C. More people come to the US to lighten US workers' workload. D. Workers in foreign countries do US workers' jobs for less money.

Answer 1

The US gets more job openings, but they pay their workers less money.

Answer 2

The correct answer is D.

When a company decides to outsource some or all its manufacturing activities it seeks to reduce its production costs, because in less-developed countries factors of production are generally cheaper (land, labor, capital), there are less strict legal requeriments for companies, etc. This allows corporations to produce more efficiently and to become more competitive in the international markets.

The employees in the US suffer the consequences when a US company decides to outsource its activities because many lose their jobs as labor costs in the US cannot compete with those from less-developed nations.