Explain the implications of outsourcing for employment and wages in the domestic and foreign labor markets
What will be an ideal response?
If domestic firms out source their jobs abroad, then there will be a decrease in the demand for domestic workers and an increase in the demand for foreign workers that are substitutable for the domestic workers. As a result, the domestic labor demand curve shifts leftward, so equilibrium domestic employment and the market clearing domestic wage will decrease. The foreign labor demand curve shifts rightward, so equilibrium foreign employment and the market clearing foreign wage will increase.
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How did the European single currency evolved?
What will be an ideal response?
Exhibit 1A-1 Straight line
As shown in Exhibit 1A-1, the slope of straight line AB:
A. decreases with increases in X. B. increases with increases in X. C. increases with decreases in X. D. remains constant with changes in X.
Which of the following is a characteristic of a perfectly competitive seller's demand curve?
A. Price and marginal revenue are equal at all levels of output. B. Average revenue is less than price. C. Its elasticity at all levels of output is 1. D. It is the same as the market demand curve.
Colombia produces coffee with less labor and land than any other country; it therefore surely has
A. an absolute advantage in coffee production. B. a comparative advantage in coffee production. C. absolute efficiency in coffee production. D. a comparatively absolute advantage in coffee production.