Question

A major reason for the practice of outsourcing is


A. more skilled labor is available outside the country.
B. lower labor costs.
C. importing is better for the economy than exporting.
D. better working conditions for laborers.

Answer 1

(B) lower labor costs. It's one of the big reasons why a lot of manufacturers build factories elsewhere such as Mexico, China, Southeast Asia, etc.. because the labor costs are so low. Workers there can be hired at far lower costs there than those in nations like the United States.