20
QuizMultiple Choice

Unit Test — Unit test

Question 20 • $2526: Full: 2102320: Economics HONORS: NEW CREDIT

Why might developed economies want to outsource manufacturing and other jobs to developing economies?

Answer
A
Developed economies can find more inexpensive labor in developing economies.
B
Developed economies are responsible for helping developing economies progress.
C
Developed economies focus only on service, not manufacturing, so they must outsource.
D
Developing economies produce higher-quality goods, so it makes sense to outsource.

Explanation

Businesses in developed economies may outsource work to developing economies because wages and other labor costs are often lower there. This can reduce the cost of making goods or providing services. Choice A describes this cost-saving reason; outsourcing is not required by a duty to promote development, and it does not necessarily mean the goods are higher quality.

AI-written and checked against the verified answer.

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