A Major Criticism of Offshoring Is That It ________

question 34

Multiple Choice

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

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Definitions:

Common Resource

A shared resource that multiple parties can access and use, which often leads to overuse and depletion due to a lack of exclusive ownership.

Positive Externality

A benefit that affects a party who did not choose to incur that benefit, often associated with public goods or services that extend beyond the direct participants in an economic activity.

Rival in Consumption

Refers to a situation where the consumption of a good by one individual prevents or diminishes its consumption by another.

Club Goods

Goods that are excludable but non-rivalrous, meaning they can be accessed by members of a specific group but one person's use does not diminish availability for others.