Asked by GRETE ELISE WAGNER PAR on Jul 02, 2024
If company X is successfully outsourcing its production of T-shirts to China,it is
A) Creating wealth by moving labor in China from lower value use to higher value use
B) Should be stopped on economic grounds since it is destroying wealth
C) Destroying wealth by acquiring cheaper labor from China
D) Both A & C
Outsourcing
The business practice of hiring parties outside a company to perform services or create goods that traditionally were performed in-house by the company's own employees.
T-Shirts
Casual shirts made of fabric, typically having short sleeves and no collar, popular for everyday wear.
Economic Grounds
The basis or rationale for decisions or actions based on financial or economic factors.
- Evaluate the consequences of trade restrictions and outsourcing on economic wealth.
- Appreciate the cause and effect relationship between economic actions, policies, and the resulting wealth formation or destruction.
Learning Objectives
- Evaluate the consequences of trade restrictions and outsourcing on economic wealth.
- Appreciate the cause and effect relationship between economic actions, policies, and the resulting wealth formation or destruction.