The main reason that firms outsource is that:
A) low-wage workers in other countries are more productive than are U.S. workers.
B) hiring low-wage workers reduces firms' costs.
C) hiring low-wage workers provides a tax deduction to firms.
D) U.S. workers cannot perform the tasks performed by workers in other countries.

Question

Quizplus · Accepted Answer

The main reason that firms outsource is to reduce their costs by hiring low-wage workers. This allows them to save money on labor costs and increase their profit margins. While there may be other factors that contribute to outsourcing decisions, such as access to new markets or technology, cost reduction is typically the primary driver.

The Main Reason That Firms Outsource Is That