How do these principles explain why Americans have exported customer service operations in India

Geography

1 answer:

boyakko [2]2 years ago

7 0

Answer: They exported customer service operations to India for a comparative advantage.

Explanation:

The services in India are provided to businesses at a lower cost than they would pay in their home country. When a country can provide these services in cheaper ways for production it's called a comparative advantage.

The United States has the technology for customer service representatives and can afford a higher pay rate. However, they shift these services to countries where the pay is low. This lets the company make more money even if it makes their customers unhappy with the services they are provided.

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