The offshoring of unskilled work from the home country to a foreign country will cause:
A) an increase in the wages for unskilled workers in the home country.
B) a decrease in the wages for skilled workers in the home country.
C) an increase in the wages for skilled workers in the home country.
D) a decrease in the wages for skilled workers in the foreign country.

Question

Quizplus · Accepted Answer

Offshoring unskilled work reduces the demand for unskilled labor in the home country, potentially increasing the relative demand for skilled workers. This can lead to higher wages for skilled workers as their importance in the domestic economy grows.

The Offshoring of Unskilled Work from the Home Country to a Foreign