Outsourcing

A loss of jobs in the US is a

• positive effect of outsourcing

• negative effect of outsourcing

What is outsourcing?

• A) The practice of hiring external organizations to perform services or create goods that were traditionally performed in-house by the company's own staff.

• B) The process of selling goods to foreign countries.

• C) The act of merging two companies into one.

• D) The strategy of investing in local businesses to boost the economy.

Which of the following is a common reason companies choose to outsource?

• A) To increase local employment opportunities.

• B) To reduce costs and improve efficiency.

• C) To comply with government regulations.

• D) To expand their physical office space.

How can outsourcing impact the local job market in the outsourcing country?

• A) It always increases local employment.

• B) It can lead to job losses in certain sectors.

• C) It guarantees higher wages for local workers.

• D) It has no impact on the local job market.

Which of the following is a potential benefit of outsourcing for companies?

• A) Loss of control over business processes.

• B) Access to global talent and expertise.

• C) Increased regulatory compliance issues.

• D) Higher operational costs.

What is a potential risk of outsourcing?

• A) Improved quality of service.

• B) Enhanced focus on core business activities.

• C) Loss of sensitive data and intellectual property.

• D) Increased innovation and creativity.

Which industry is most likely to benefit from outsourcing?

• A) Agriculture

• B) Information Technology

• C) Mining

• D) Construction

How does outsourcing affect the economy of the outsourcing country?

• A) It always boosts the local economy.

• B) It can lead to a trade deficit.

• C) It has no economic impact.

• D) It always results in economic growth.

What is a common criticism of outsourcing?

• A) It leads to cultural exchange.

• B) It creates a dependency on foreign labor.

• C) It improves local job opportunities.

• D) It enhances product quality.

Which of the following is an example of outsourcing?

• A) A US company hiring a local firm to manage its payroll.

• B) A US company hiring an Indian firm to handle customer service.

• C) A US company opening a new branch in Canada.

• D) A US company acquiring a smaller competitor.