Question

This type of nation does NOT have the resources to carry on productive trade agreements, but makes money by providing the sources of labor for outsourcing.
an industrialized nation
a third-world nation
a developing nation
a Capitalist nation

Answer 1

A developing nation like Vietnam, India and Indonesia. They have a huge labour force.

Answer 2

The correct answer is: "a developing nation".

Developing nations lack the technological developments which are necessary to compete in international markets. Most developed countries that  use such technologies are able to produce more elaborated goods (hence more expensive) at a much lower cost and therefore gather the profits from international trade.

On the other hand, developing nations where wage levels are low and where institutions are weak become an attractive destination for corporations that perform outsourcing. Outsourcing consists on a company hiring another one in order to perform a certain task. If a corporation hires a company in a developing country, for example to perform certain stages of its production process, it can profit for the lower labor costs and the lack of regulation and taxation system that emerges from the lack of strong institutions. This outsourcing contract allows the corporation of producting at a lower cost than before and to become more competitive in the international markets.