As offshoring activities increase, the demand for
Relatively skilled workers in the home nation:
A)will increase because the new demand is for relatively higherskilled workers than previously
Offshored activities.
B)will decrease because the new demand is for lower skilled workers.
C)will neither increase nor decrease.
D)will raise wages to the point that offshoring no longer becomes a possibility.

Question

As offshoring activities increase, the demand for
Relatively skilled workers in the home nation:
A)will increase because the new demand is for relatively higher­skilled workers than previously
Offshored activities.
B)will decrease because the new demand is for lower­ skilled workers.
C)will neither increase nor decrease.
D)will raise wages to the point that offshoring no longer becomes a possibility.

Quizplus · Accepted Answer

Offshoring typically involves outsourcing low-skilled jobs to countries with lower labor costs. As a result, the jobs that remain in the home nation tend to require higher levels of skills and education. Therefore, the demand for relatively skilled workers in the home nation is likely to increase with the growth of offshoring activities.

As Offshoring Activities Increase, the Demand for