Identify the differences between outsourcing and offshoring and discuss their impact on U.S. labor.
What will be an ideal response?
Ans: Outsourcing: often describes the use of low-cost foreign labor but can also mean contracting U.S. workers to do needed tasks, typically for less pay than a company employee would earn. Offshoring: refers more specifically to practice among U.S. companies of contracting with businesses outside of the country to perform services that would otherwise be done by U.S. workers.
KEY: Learning Objective: 15.1: Describe the three major economic revolutions that have shaped the contemporary world.
REF: Cognitive Domain: Analysis
Answer Location: The Information Revolution and Postindustrial Society
Difficulty Level: Medium
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