When Considering Outsourcing, Most Laypeople

question 4

Multiple Choice

When considering outsourcing, most laypeople:

• A) recognize its benefits to raising foreign wages.
• B) oppose it because of the visible loss of jobs.
• C) support it because they enjoy lower consumer prices.
• D) recognize it frees resources for other jobs for which the U.S. has a comparative advantage.

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Definitions:

Cost Center

A unit within an organization that does not directly add to profit but still incurs costs, such as a department or project, which needs to be monitored for internal efficiency.

Generates Revenues

The process of bringing in income from business activities, such as sales of goods or services.

Responsibility Center

A segment or area within an organization whose managers are accountable for specified sets of activities and performance.

Desired Return

The expected gain or profit specified by an investor or business from an investment or project.