When a U.S. company shifts its call-center operations overseas to reduce costs, it is applying the economic concept of
A) thinking at the margin.
B) comparative advantage.
C) diminishing returns.
D) using assumptions to simplify.

Question

Quizplus · Accepted Answer

By shifting call-center operations overseas, the company is able to take advantage of the lower labor costs and other economic advantages of the foreign country, which is an example of comparative advantage.

When a US Company Shifts Its Call-Center Operations Overseas to Reduce Costs