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MrX Works in the Warehouse of a Large Textile Firm

Question 29

Multiple Choice

Mr.X works in the warehouse of a large textile firm located in the United States.The firm outsources the production of its textiles to another nation.Which of the following is an example of the possible scale effect of this event on Mr.X?


A) The outsourcing of production causes the firm to reduce the company's demand for warehouse workers in the United States and increase its demand for warehouse workers in the other nation.
B) The lower price of the textiles causes his firm to sell more textiles, increasing its demand for warehouse workers.
C) Both of the above.
D) Neither of the above.

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