Chapter 28 India's Comparative Advantage

Which term best describes hiring someone outside a company to do work that wass once done by the company's own workers?

• recycling

• outsourcing

• smart growth

• division of labor

India today is the world's largest

• democracy.

• nation-state.

• cultural region.

• developed country.

Which city in India is the main hub of IT work?

• Bangalore

• Chennai

• Hyderabad

• Mumbai

Which of the following statements about India is true?

• India is twice the size of the United States.

• India is the second most populous country in the world.

• India's population is only half that of the United States.

• India is a rural country with no major cities at all.

How is India's location an advantage for American companies?

• Shipping costs are minimized because of India's close proximity to the US.

• Meetings are easy to schedule because of India and the US are in the same time zone

• With workers in India and the United States, companies can have employees working around the clock.

• Workers can move easily between India and the United States because they are on the same continent

Why do many American companies outsource IT jobs to India?

• Indians are better qualified for those jobs than Americans are

• Labor costs are lower in India

• Few Americans want to do those kinds of jobs

• Americans do not have the expertise for those jobs

How does fierce competition for jobs affect how much workers in India can earn?

• Job candidates often accept lower pay in order to get a job.

• Employers often have to pay more when there are so many job candidates

• Strict labor laws regulate wages, so competition has little effect on earnings.

• Successful job candidates receive high pay because of the competitive nature of the job search

What is a consequence of the low cost of living in India?

• Most Indians only have to work part time in order to make a living.

• The Average Indian lives at a higher standard of living than the average American

• Many employers use the low cost of living as an execuse to pay workers too little to live on

• Many Indians enjoy a high standard of living despite that seems low to Americans

What attracts many Indian workers to jobs in call centers?

• Opportunities to transfer to call centers in the United States

• good pay and pleasant working conditions

• lifetime job guarantees.

• all of the above

What is India's official language?

• Urdu

• English

• Hindi

• they do not have an official language