Offshoring of Very-High-Skill Medical and Technology Services to Other Nations

question 20

Multiple Choice

Offshoring of very-high-skill medical and technology services to other nations seems to contradict the value chain model of offshoring. Which of the following could be a reason?

• A) The ratio of wages of lower-skilled workers to higher-skilled workers in these other nations is relatively lower than the same ratio for the United States.
• B) The wages of higher-skilled workers (such as accountants) in these other nations are relatively higher than in the United States.
• C) Higher-skilled workers in India earn top money for what they do.
• D) The wages of higher-skilled workers (such as accountants) in these other nations are relatively lower than in the United States.

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Definitions:

Buyer Power

The influence that customers have over a company, including their ability to drive prices down or demand higher quality products and services.

Buyers

Individuals or entities that purchase goods or services for personal use, resale, or use in production or operations.

Choices

The range of different options or decisions available to an individual or organization.

Rivalry

The competitive relationship between businesses in the same industry, aiming to achieve higher sales, market share, and customer loyalty.