Final answer:
Sears Canada's outsourcing of 1600 call-center jobs is an example of a cost reduction strategy. This business practice involves contracting jobs to external sources to decrease operational expenses.
Step-by-step explanation:
The situation with Sears Canada outsourcing 1600 call-center jobs to an external service provider exemplifies a cost reduction strategy. Outsourcing is a practice where a company contracts jobs to an outside source, often in another country, to reduce operational costs. This strategic move can lead to increased unemployment in the company's home country, as it searches for cheaper labor markets. The reduced labor costs can offer significant savings to companies, allowing them to competitively price their products and services in the global market. However, outsourcing can also result in the polarization of jobs, where there is a growing divide between high-end and low-end positions and a decrease in middle-level jobs.