When countries open up for offshoring, which country will tend to specialize in research and development?
A) the skilled-labor-abundant country
B) the unskilled-labor-abundant country
C) neither country
D) both countries

Question

Quizplus · Accepted Answer

Research and development require highly skilled workers, so the skilled-labor-abundant country is more likely to specialize in this area. The unskilled-labor-abundant country may focus more on low-skill production tasks. Neither country or both countries may also be correct in some situations, but option A is the most likely choice.

When Countries Open Up for Offshoring, Which Country Will Tend