Final Answer:
Before offshore outsourcing, income distribution between labor and capital was more balanced, with a relatively equitable split between the two factors of production. The graph can be found on the attachment.
Step-by-step explanation:
The graph depicting income distribution between labor and capital before offshore outsourcing typically shows a more balanced division. Labor received a substantial portion of the income, reflecting fair wages and employment opportunities within the local economy. Capital, representing returns on investments and ownership, also claimed a significant but not overwhelming share of the income. This equilibrium often resulted from a more localized production landscape, with companies relying on domestic labor forces and limited global market integration.
This scenario fostered a middle-class-centric economy, with decent wages and job security. However, as globalization and offshore outsourcing increased, the graph trended toward a higher share for capital and a decreasing portion for labor. Offshoring led to cost-cutting measures, lower wages, and job displacement, altering the income distribution significantly in favor of capital.
Income distribution was, therefore, more balanced between labor and capital before offshore outsourcing accelerated.