If worker productivity is the same in each country, outsourcing and labor migration will both result in an equalization of wages across the two countries.

Question

Quizplus · Accepted Answer

If worker productivity is the same in each country, then wages will adjust to be equal in each country as companies will seek to minimize costs. This could happen through outsourcing or through labor migration, where workers move from low-wage countries to high-wage countries.

If Worker Productivity Is the Same in Each Country, Outsourcing