An Increase in Offshoring Will Raise the Relative Wage of Skilled

question 90

Multiple Choice

An increase in offshoring will raise the relative wage of skilled labor in both the home and offshored nations because:

• A) the home nation will shift resources from lower-skilled to higher-skilled domestic workers, and the offshored nation will see a shift in in demand from lower-skilled to higher-skilled workers.
• B) the home nation will shift resources from higher-skilled to lower-skilled domestic workers, and the offshored nation will see a shift in demand from higher-skilled to lower-skilled workers.
• C) activities that used higher-priced, higher-skilled workers in the home nation now use lower-priced, lower-skilled workers in the offshored nation.
• D) the home nation will shift resources from lower-skilled to higher-skilled domestic workers, while activities that used higher-priced, higher-skilled workers in the offshored nation will now use lower-priced, lower-skilled workers.

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Definitions:

Precontemplation

The stage of change in which individuals do not yet recognize that they have a problem or need to change.

Maintenance

The process of preserving a condition or situation or the process of keeping something in existence or continuance.

Social Support

The assistance provided by others, including emotional, informational, and practical help, contributing to an individual's well-being.

Social Network

A structure made up of individuals or organizations that are connected by one or more specific types of interdependencies, such as friendships, kinship, common interest, or economic exchanges.