This chapter's "Focus on Globalization" discusses outsourcing jobs to countries outside the United States. What is an outcome of this outsourcing?
A) decreased profits for U.S. corporations
B) an increase in union membership within the U.S.
C) corporations realizing the importance of workers' rights
D) fewer jobs in the U.S., as they are replaced by machines and outsourced jobs
E) more incentives for illegal immigration

Question

Quizplus · Accepted Answer

Outsourcing jobs to countries outside of the United States results in fewer jobs in the U.S. as those jobs are replaced by machines or outsourced jobs. This is because companies can save money by paying lower wages and fewer benefits to workers in other countries. Additionally, outsourcing may lead to a decrease in profits for U.S. corporations if the quality of outsourced work is poor or if there are unexpected costs associated with managing an overseas workforce. However, outsourcing does not necessarily lead to an increase in union membership within the U.S. or corporations realizing the importance of workers' rights. It also does not create incentives for illegal immigration.

This Chapter's "Focus on Globalization" Discusses Outsourcing Jobs to Countries