Question

Why do lower labor costs in other countries lead to job loss in the United States?
A. It enables foreign producers to undersell domestic producers.
B. Foreign producers are able to insource and make higher profits.
C. Workers migrate in search of better-paying jobs.
D. Foreign governments can charge higher tariffs and make more revenues.

Answer 1

The correct answer for the question that is being presented above is this one: "B. Foreign producers are able to in source and make higher profits." Lower labor costs in other countries lead to job loss in the United States because foreign producers are able to insource and make higher profits.

Answer 2

Correct answer choice is:

B. Foreign producers are able to insource and make higher profits.

Insourcing is commonly used around the world by different countries in production to reduce costs of taxes, labor, and transportation. The projects of production are assigned to the individuals or department within the company instead of outsourcing, which leads to a better profit to the companies. And this one the reasons that led to job loss in the United States.