As Offshoring Activities Increase, the Relative Demand for Skilled Workers

question 57

Multiple Choice

As offshoring activities increase, the relative demand for skilled workers in the home nation:

• A) will increase.
• B) will decrease.
• C) will neither increase nor decrease.
• D) will raise wages to the point that offshoring no longer becomes a possibility.

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Definitions:

Direct Materials Purchases

The total cost of raw materials bought during a period for use in the production process.

Material A

A placeholder term often used to refer to a specific type of raw material used in manufacturing or production processes.

Direct Materials

Raw materials that can be directly attributed to the production of specific goods or services.

Production

The process of creating goods or services by combining labor, materials, and technology.