Final answer:
The statement provided is false because industries that benefit from global sourcing are typically those with high labor intensity, which can significantly reduce production costs by moving to regions with lower wages.
Step-by-step explanation:
The statement 'Industries that benefit the most from global sourcing are characterized by low labor intensity in product and service production' is false. Global sourcing typically benefits industries that have a high labor intensity due to the cost savings on labor.
Industries that are characterized by low labor intensity tend to have higher skilled workers and are less likely to move production overseas because the cost of labor is less significant in the overall production costs.
Industries with low-skill labor often seek places with lower cost of living to take advantage of lower wages, which makes a significant difference for those with high labor intensity.
These industries, known as footloose industries, like the textile industry, can move more easily in search of cheaper labor without negative impacts on profitability.
Contrastingly, industries that require high-skill labor have less flexibility in relocation due to the higher cost of labor and the need for specialized knowledge.
For instance, industries in areas like California's Silicon Valley are less likely to relocate due to the local pool of specialized knowledge and skills that is harder to find elsewhere.