Question

When politicians argue that the outsourcing or offshoring of techincal support to India by the Dell Computer Corporation is harmful to the U.S. economy, they are employing which of the following arguments for restricting trade?

Answer 1

Answer:

The job argument

Explanation:

Outsourcing or offshoring simply means contracting out services or functions. It is likely that Dell Computer Corporation decided to outsource their technical support to india due to the following reasons:

First, to reduce cost. India has a large population and relatively cheap labor compared to the United States. Second, outsourcing might be expedient in a bid to focus on core business goals and planning. Third, it could be that Dell Computer Corporation U.S. want to enhance service quality which is likley to be handled better if seperated from core operations, or the company wants to solve capacity issues. Whatever the reason for its decision to outsource, politicians are of the opinion that it would affect employment in U.S. adversely. Outsourcing is likely to create a zero-sum as the Indian economy will thrive at the expense of the U.S. Politicians point out that lots of jobs in the United States will be lost and this could have adverse conseqeunces on the U.S. economy. This is called the job argument.