In Theory,some People Might Lose in the Short Run from Outsourcing,but

question 91

Multiple Choice

In theory,some people might lose in the short run from outsourcing,but in the long run,all should benefit.Which option demonstrates that this theory might be FALSE?

• A) Lower labor costs lead to lower prices, so more foreigners can buy imports.
• B) Income earned at outsourced jobs allows foreign workers to purchase imports.
• C) Lower prices allow more consumers to buy the good domestically.
• D) Outsourcing stimulates competition.
• E) Inadequate transition programs hinder the ability of domestic workers, who lost their jobs to outsourcing, to obtain new jobs.

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Definitions:

Real Rate Of Return

The annual percentage return realized on an investment, adjusted for changes in the price level due to inflation or other external factors.

Experts

Individuals with advanced knowledge or skills in a particular area, usually acquired through education, training, and experience.

Mutual Funds

Investment vehicles that pool money from multiple investors to purchase a diversified portfolio of stocks, bonds, or other securities.

Corporate America

A term often referring to the United States' major business corporations and their practices, influence on the economy, and role in society.