Asked by Kotomi Yasumoto on May 19, 2024
Verified
Which of the following best describes economists' general assessment of the impacts of offshoring?
A) Offshoring has an overall negative impact on the U.S. economy because of the significant domestic job losses it causes.
B) Offshoring benefits the U.S. economy by promoting greater specialization and exchange of goods and services based on comparative advantage.
C) Offshoring provides some cost advantages but generally results in much-lower-quality goods for consumers.
D) Job losses from offshoring are magnified by job losses in complementary industries.
Comparative Advantage
The ability of an entity to produce a good or service at a lower opportunity cost than another entity.
Offshoring
The relocation of a business process or operation from one country to another, typically to leverage lower labor costs.
Specialization
The process by which individuals, businesses, or countries focus on producing a limited range of goods or services to gain greater efficiency and productivity.
- Understand the concept of offshoring and its economic impacts.
Verified Answer
MM
Michelle MinjeongMay 22, 2024
Final Answer :
B
Explanation :
Economists generally view offshoring as beneficial to the U.S. economy because it allows for greater specialization and the exchange of goods and services based on comparative advantage, leading to increased efficiency and potentially lower prices for consumers.
Learning Objectives
- Understand the concept of offshoring and its economic impacts.