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The Theory of Absolute Advantage Explains Most of Today's Global

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The theory of absolute advantage explains most of today's global trade.


Definitions:

Offshoring

Moving operations from the country where a company is headquartered to a country where pay rates are lower but the necessary skills are available.

Psychological Contract

The unwritten set of expectations between an employer and employee regarding mutual obligations.

Job Security

The likelihood of an individual to retain their job without the risk of becoming unemployed.

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