Question

Which is a negative impact of outsourcing?

Select one:

A. cheaper labor cost

B. takes jobs out of countries and places them in other countries

C. helps the economy of other nations

D. increased relationships with foreign countries

Answer 1

B. takes jobs out of countries and places them in other countries

Step-by-step explanation:

Outsourcing is the process of transferring jobs or assigning jobs to other countries. This practice is done so as to save the costs and earn the maximum profit out of it. In turn, it has been researched that the process increases the unemployment rate in the company. In terms of earning large profits, the jobs are transferred to other countries, thereby increasing unemployment. The company has to go through other problems such as problems related to the quality of the work done and the security issues.