Outsourcing specifically refers to a firm choosing to employ labor outside of the country in which the firm is located. This can have significant impacts on the labor market both in the home country of the firm and in the country where the labor is being outsourced to. It can also be a factor that shifts the demand for and supply of labor curves.

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Outsourcing Is

Question 285

Multiple Choice

Outsourcing is

A) one of the factors that shifts the supply of labor curve.
B) when a firm employs labor outside the country in which the firm is located.
C) when the change in the price of a complementary input causes the demand for labor curve to shift in the opposite direction.
D) the cost of using an additional unit of an input.

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