Question

Recently, computer programmers in developing countries such as India have begun doing work formerly done in the United States. This shift has undoubtedly led to substantial pay cuts for some programmers in the United States. Answer the following two questions: How is this possible when the wages of skilled labor are rising in the United States as a whole?

O A. In the short run, programmers with specific skills that compete with Indian workers may face wage cuts, while, in the long run, programming in general becomes more efficient, which can increase wages for others in the industry.
O B. Indian firms use government subsidies to unfairly compete with U.S. programmers in specific sectors of the industry.
O C. Indian firms are able to employ relatively unskilled workers at low wages to perform routine programming tasks.
O D. In the long run, programmers with specific skills that compete with Indian workers may face wage cuts, while, in the short run, programming in general is more efficient, which can increase wages for others in the industry.

Answer 1

The shift of computer programming work from the United States to developing countries like India has led to pay cuts for some programmers in the United States. The correct answer is option A.

Step-by-step explanation:

The correct answer is option A. In the short run, programmers with specific skills that compete with Indian workers may face wage cuts, while, in the long run, programming in general becomes more efficient, which can increase wages for others in the industry.

Globalization and advancements in technology have made it possible for computer programmers in developing countries like India to work on tasks that were previously done in the United States. This has resulted in a shift of work and has impacted the wages of programmers in the United States. In the short run, programmers with skills that directly compete with Indian workers may face a decrease in wages due to the increased competition. However, in the long run, programming as a whole becomes more efficient, which can lead to increased wages for other programmers in the industry.

In short, specific groups of U.S. programmers may face wage cuts in the short term due to the offshoring of jobs to lower-wage countries like India, but overall industry efficiency can lead to wage increases in the long term. Globalization does not uniformly affect all workers and can result in complex shifts in wage dynamics.

The shift of computer programming jobs from the United States to developing countries like India can lead to wage cuts for some programmers in the United States, despite the general rise in wages for skilled labor. This is possible because in the short run, programmers with specific skills that now directly compete with lower-wage Indian workers may face wage reductions. However, in the long run, the overall efficiency in programming can improve, which might increase wages for other workers in the industry. This dynamic is a result of the global marketplace and the tendency for certain tasks to be offshored to countries with lower labor costs.

Additionally, while globalization may cause lower wages for low-skilled workers, it is important to note that a significant portion of U.S. trade is with other high-wage economies, which may mitigate this impact. Moreover, skills programs that shift the supply in labor markets can cause wages to go up for low-skill workers while potentially lowering wages for high-skill workers. This can result in reduced wage inequality.