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Customer Service Jobs Are Easily Outsourced

Question 141

Essay

Customer service jobs are easily outsourced.Graph the following for the market for customer service,and explain what happens to wages and the quantity of labor.
a.What are the short-run effects of this outsourcing on the home country?
b.What are the effects in the foreign country?
c.Who wins and loses in these moves?

Correct Answer:

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a.Firms reduce demand for workers in the...

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