Outsourcing of Service Functions Has Created New Types of Services,further

question 76

True/False

Outsourcing of service functions has created new types of services,further increasing the complex division of labor.

---

Definitions:

Technology Spillovers

Benefits that firms or countries obtain by imitating or learning from the innovations of others, often without incurring the cost of innovation.

Subsidies

Financial assistance grants or tax breaks provided by the government to support businesses, organizations, or individuals, encouraging production or consumption of certain goods and services.

Computer Chips

Small pieces of semiconductor material (usually silicon) with an integrated circuit (IC) used in electronic devices to perform computing tasks and other functions.

Negative Externality

A situation where a third party suffers costs from an economic transaction in which they are not directly involved.