When firms engage in outsourcing, ________ benefit and ______ are harmed.
A) the firms; consumers
B) consumers; the firms
C) consumers; the firm's domestic employees
D) the firms; the firms' foreign employees

Question

Quizplus · Accepted Answer

When firms engage in outsourcing, they benefit from cheaper labor and lower production costs. However, this can harm the firm's domestic employees as their jobs may be replaced by foreign workers who are willing to work for lower wages. Consumers may also benefit from lower prices, but they may be harmed if the quality of the outsourced goods or services is lower or if there are negative impacts on the environment or on human rights in the foreign country where the outsourcing takes place. Therefore, choice C is the best answer, as it identifies both who benefits (the firms) and who is harmed (the firm's domestic employees and consumers).

When Firms Engage in Outsourcing, ________ Benefit and ______ Are

When Firms Engage in Outsourcing, __ Benefit and Are