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One reason why many of the manufacturing jobs are outsourced is ______?

1) lower labor cost in these countries
2) trade barriers
3) greater potential for products of poor quality
4) increased political risk

1 Answer

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Final answer:

Outsourcing of manufacturing jobs is primarily driven by the attraction of lower labor costs in other countries. While factors such as trade barriers and political risk are considered, economic benefits from reduced production expenses play the biggest role in companies' decisions to outsource.

Step-by-step explanation:

One reason why many of the manufacturing jobs are outsourced is due to the lower labor costs in these countries. Outsourcing has become a common practice for multinational corporations as they seek the least expensive options for production, often leading to the establishment of factories in countries with cheaper labor. This relocation often results in lower job availability in developed countries and contributes to rising levels of inequality, creating a political debate about how to maintain jobs domestically.

The decision to relocate factories also considers factors such as trade barriers and political risks; however, the most compelling reason is typically economic, especially related to labor costs. Regardless, the implications of outsourcing are significant, including the potential for poorer quality products, weakened environmental regulations, and impacts on local economies in both the originating and receiving countries.

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