Over time, India has become an important source of call center services used by U.S. firms and their customers. This change in India's ability to staff and operate these call centers reflects
i. learning- by- doing
ii. absolute advantage
iii. dynamic comparative advantage
A) i and ii only.
B) i and iii only.
C) iii only.
D) ii and iii.

Question

Quizplus · Accepted Answer

India's ability to staff and operate call centers reflects learning-by-doing (i) as the country gained experience and knowledge in providing these services. It also demonstrates dynamic comparative advantage (iii) as India improved its technology, infrastructure, and workforce, resulting in an increasingly efficient and effective service delivery compared to other countries. Absolute advantage (ii) does not fully explain the development of India's call center industry as it only considers a country's ability to produce a particular product or service at a lower cost or higher quality than another country, whereas other factors such as infrastructure and workforce also contributed to India's success in this sector.

Over Time, India Has Become an Important Source of Call