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 one of the practices in business that deals with assigning the job of performing tasks and handling operations of the company to any third party. The third party is given the opportunity to perform the major task and job function in order to save the costs. It is a process of cost cutting that has many negative impacts on the business of the entire country. The jobs are outsourced to the developing countries and in turn the jobs in the main country falls below The unemployment rate increases in path of cost cutting.