6
QuizMultiple Choice

The Modern Global Economy

Question 6 • Contemporary Issues

Which statement best explains why jobs may be outsourced?

Answer
A
Labor is often found in other countries at cheaper costs.
B
Relocating manufacturing plants results in higher-quality goods.
C
Production time is often quicker when jobs are created internationally.
D
It reduces barriers to trade and goods move more freely between countries.

Explanation

Companies may outsource jobs to reduce operating costs. In many cases, workers in another country can be hired for lower wages, making labor cheaper; this is why “Labor is often found in other countries at cheaper costs” best explains outsourcing. The other choices describe possible outcomes or effects, but they are not the main reason jobs are outsourced.

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