Offshoring of very-high-skill medical and technology services to other nations seems to contradict the value chain model of offshoring. Which of the following could be a reason?
A) The ratio of wages of lower-skilled workers to higher-skilled workers in these other nations is relatively lower than the same ratio for the United States.
B) The wages of higher-skilled workers (such as accountants) in these other nations are relatively higher than in the United States.
C) Higher-skilled workers in India earn top money for what they do.
D) The wages of higher-skilled workers (such as accountants) in these other nations are relatively lower than in the United States.

Question

Quizplus · Accepted Answer

The reason for the offshoring of high-skill medical and technology services to other nations could be that the wages of higher-skilled workers in these nations are relatively lower than in the United States. This is in line with the value chain model of offshoring, where companies seek to lower costs by outsourcing to countries where labor is cheaper.

Offshoring of Very-High-Skill Medical and Technology Services to Other Nations