Question

37) Proponents of offshoring claim all EXCEPT which of the following?

A) Aggregate employment figures show that displaced workers find new jobs.

B) Offshoring increases the number of high-value jobs in the home countries of offshoring companies.

C) Offshoring is fundamentally better for workers than the introduction of labor-saving technologies.

D) There are upper limits on offshoring because there are not enough workers abroad with needed skills who will permanently work for low wages.

38) A major criticism of offshoring is that it ________.

A) increases production costs

B) exchanges good jobs for bad jobs

C) threatens the sovereignty of larger countries

D) allows companies to avoid payment of any taxes

39) Critics of offshoring claim all EXCEPT which of the following?

A) Cost savings are seldom passed on to final consumers.

B) Workers who have been displaced by offshoring do not have the skills needed for higher-value jobs.

C) Incomes of workers in offshoring countries have gone down as a percentage of national income.

D) Offshoring reduces the incomes of people in low-wage countries.

40) Which of the following conditions must be met for a company to increase profits through foreign sales?

A) The company can obtain resources abroad.

B) The costs to make the sales do not increase disproportionately.

C) The company can offshore its production.

D) The foreign market can be reached through exporting rather than direct investment.

Answer 1

37) Solution: Offshoring is fundamentally better for workers than the introduction of labor-saving technologies

Explanation: Offshoring refers to relocation of a business process from one nation to another with the motive of cost cutting and increasing profits. It reduces jobs in the market thus fundamentally not better for workers

　

38) Solution: exchanges good jobs for bad jobs

Explanation: A major criticism of offshoring is unemployment and promoting the substandard labor conditions

39) Solution: Offshoring reduces the incomes of people in low-wage countries.

Explanation: In low-wage countries, offshoring increases the incomes of people

　

40) Solution: The costs to make the sales do not increase disproportionately

Explanation: To maximize profits through foreign sales the main condition is that costs to make the sales would not rise disproportionately