To predict which activities a U.S. firm will find profitable to offshore, we must assume that it can use relatively lower-cost labor in a foreign nation. This is usually _____ labor.
A) skilled
B) unskilled
C) economical
D) unnecessary

Question

Quizplus · Accepted Answer

The assumption is that the U.S. firm can use lower-cost labor in a foreign nation, which typically means unskilled labor. Skilled labor tends to have more consistent and competitive wages across countries, while unskilled labor can vary greatly in cost between countries. Therefore, the most profitable activities to offshore will likely involve tasks that require low levels of skill and can be easily performed by lower-cost, unskilled labor in a foreign nation.

To Predict Which Activities a U