Outsourcing Is Attractive Because It ________

question 38

Multiple Choice

Outsourcing is attractive because it ________.

• A) increases the speed of transactions
• B) provides a tax haven
• C) increases customer satisfaction
• D) lowers labor costs

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Definitions:

Open-Economy Macroeconomic Model

A framework used to analyze economies that engage in international trade of goods, services, and financial assets.

Tariff

A tax levied on imported and, less commonly, exported goods, used to regulate trade by increasing the price of foreign products to encourage or protect domestic industry.

Real Exchange Rate

The rate at which a person can trade goods and services of one country for those of another, adjusted for inflation.

Import Quota

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