As offshoring activities increase, the relative demand for skilled workers in the home nation:
A) will increase.
B) will decrease.
C) will neither increase nor decrease.
D) will raise wages to the point that offshoring no longer becomes a possibility.

Question

Quizplus · Accepted Answer

Offshoring often involves moving lower-skilled jobs to countries where labor is cheaper, which increases the relative demand for higher-skilled workers in the home nation. This is because the tasks that remain are typically more complex and require higher skill levels.

As Offshoring Activities Increase, the Relative Demand for Skilled Workers