The Offshoring of Unskilled Work from the Home Country to a Foreign

question 10

Multiple Choice

The offshoring of unskilled work from the home country to a foreign country will cause:

• A) an increase in the wages for unskilled workers in the home country.
• B) a decrease in the wages for skilled workers in the home country.
• C) an increase in the wages for skilled workers in the home country.
• D) a decrease in the wages for skilled workers in the foreign country.

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Definitions:

Fair-Value Method

An accounting approach where assets and liabilities are recorded at their current market values rather than their original cost.

Goodwill

An intangible asset arising when a company acquires another for a price higher than the fair market value of its net assets.

Other Comprehensive Income

Income that includes all changes in equity during a period except those resulting from investments by owners and distributions to owners.

Equity Method

A financial recording method where investments are logged if the investor has a considerable impact on the investee, though not complete control.