How will an increase in offshoring affect the demand for skilled labor and the wages of skilled labor in the home country?
A) The demand for skilled labor will increase, but the wages of skilled labor will decrease.
B) The demand for skilled labor and the wages of skilled labor will both decrease.
C) The demand for skilled labor will decrease, but the wages of skilled labor will increase.
D) The demand for skilled labor and the wages of skilled labor will both increase.

Question

Quizplus · Accepted Answer

Offshoring typically involves moving lower-skilled or manufacturing jobs to countries where labor is cheaper, which can lead to an increase in demand for skilled labor in the home country as companies focus more on high-skill, high-value activities. This increased demand for skilled labor can also lead to an increase in wages for skilled workers due to the higher value of their contributions and the need to attract and retain such talent.

How Will an Increase in Offshoring Affect the Demand for Skilled