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Customer Service Jobs Are Easily Outsourced

question 139

Essay

Customer service jobs are easily outsourced.Graph the following for the market for customer service,and explain what happens to wages and the quantity of labor.
a.What are the short-run effects of this outsourcing on the home country?
b.What are the effects in the foreign country?
c.Who wins and loses in these moves?


Definitions:

High-low Method

An approach in cost accounting to determine variable and fixed charges, based on analyzing the activity's minimum and maximum levels.

Job-Order Costing

A costing system used in situations where many different products, jobs, or services are produced each period.

Process Costing

A costing method used when essentially homogeneous products are produced on a continuous basis.

Cost Reconciliation Report

A financial report that reconciles the estimated, budgeted, or standard costs with the actual costs incurred.

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