What Is Outsourcing

question 21

Multiple Choice

What is outsourcing?

• A)The process of vertically integrating the factors of production.
• B)The process of selling products overseas bypassing import tariffs.
• C)The movement of production to affiliate firms outside of the country.
• D)None of the above.

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Definitions:

Environmental Damage

The harm caused to the natural environment due to human activities or natural disasters.

Import Quota

A restriction set by a government on the quantity of a certain good that can be imported into the country.

Welfare Outcomes

The effects of policies or economic conditions on the well-being and quality of life of individuals or populations.

Equivalent Tariff

A tariff level that would give the same protective effect to the domestic producers as a given non-tariff barrier does.