How Will an Increase in Offshoring Affect the Demand for Skilled

question 91

Multiple Choice

How will an increase in offshoring affect the demand for skilled labor and the wages of skilled labor in the home country?

• A) The demand for skilled labor will increase, but the wages of skilled labor will decrease.
• B) The demand for skilled labor and the wages of skilled labor will both decrease.
• C) The demand for skilled labor will decrease, but the wages of skilled labor will increase.
• D) The demand for skilled labor and the wages of skilled labor will both increase.

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Definitions:

Food Processors

Kitchen appliances used to facilitate repetitive tasks in the preparation of food, such as chopping or mixing.

Large Scale

Operations or activities conducted on a wide-ranging or extensive basis, often implying significant impact or size.

Cost Per Equivalent Unit

A calculated amount that represents the cost of materials, labor, and overhead expenses applied to a unit of production, averaged to account for partially completed units.

Conversion Activity

Activities involved in transforming raw materials into finished goods, including labor and overhead in the manufacturing process.