When U.S. firms choose to hire skilled and unskilled workers in other countries to produce goods and services, rather than producing them in the United States, we refer to this as
A) offshore procurement.
B) domestic outsourcing.
C) foreign distribution.
D) offshore outsourcing.

Question

Quizplus · Accepted Answer

Offshore outsourcing involves hiring workers in other countries to produce goods and services, rather than producing them domestically. A is incorrect because offshore procurement refers to buying goods and services from foreign sources, not hiring workers. B is incorrect because domestic outsourcing refers to hiring other companies within the United States to perform certain tasks, rather than doing them in-house. C is incorrect because foreign distribution refers to the process of selling and distributing products in foreign markets, not the production process.

When US Firms Choose to Hire Skilled and Unskilled Workers in in Other