For the United States, outsourcing tends to result from
A) a change in the pattern of comparative advantage.
B) the desire of domestic firms to keep domestic labor unions happy.
C) poor educational systems that result in domestic workers becoming less productive.
D) highly restrictive import tariffs and import quotas.

Question

Quizplus · Accepted Answer

Outsourcing is a result of a change in the pattern of comparative advantage, where firms shift production to countries that can produce goods and services at a lower cost. This change in comparative advantage can occur due to several factors, such as differences in labor costs, natural resources, innovative technologies, or trade policies. Therefore, outsourcing is not caused by the desire to keep domestic labor unions happy or poor educational systems, nor is it a response to highly restrictive import tariffs and quotas.

For the United States, Outsourcing Tends to Result from