How would offshoring affect the demand for high-skilled workers in the home country?
A) The relative demand and the absolute demand for high-skilled workers would increase.
B) The relative demand would increase and the absolute demand would decrease.
C) The relative demand would decrease and the absolute demand would increase.
D) The relative demand and the absolute demand would decrease.

Question

Quizplus · Accepted Answer

Offshoring typically involves moving high-skilled jobs to a foreign country where the cost of labor is lower. This results in a decrease in the absolute demand for high-skilled workers in the home country as fewer of these jobs are available. However, the relative demand for high-skilled workers may increase as the offshoring leads to an increase in the demand for workers with complementary skills or for other higher-value added activities that cannot be easily offshored.

How Would Offshoring Affect the Demand for High-Skilled Workers in the Home