Microeconomics: Principles, Applications, and Tools (8th Edition)

Published by Prentice Hall
ISBN 10: 0-13294-886-9
ISBN 13: 978-0-13294-886-9

Chapter 3 - Exchange and Markets - Exercises - 3.1 Comparative Advantage and Exchange - Page 63: 1.9a

Answer

Jobs lost to outsourcing are at least partly offset by jobs gained through in sourcing, jobs that are shifted to overseas. Secondly, the jobs lost are a small part of the normal jobs loss. Therefore, the net effect from outsourcing could be a loss fewer than 10 jobs in the firm.

Work Step by Step

To solve this one must look at the jobs being outsourced and jobs being lost domestically and then compare the effect of such events to one and other.
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