Question 5 • CMS 2026-2027 Economics and Personal Finance CREDIT RECOVERY
Companies in developed economies may outsource work to developing economies because labor often costs less there. Lower labor costs can reduce the expense of producing goods or providing services. This makes “Developed economies can find more inexpensive labor in developing economies” the best answer; outsourcing is not required simply because an economy focuses on services, nor is it mainly about helping other countries or guaranteed higher quality.
AI-written and checked against the verified answer.