Question

Match the scenarios to the factors that affect the labor market

Answer 1

IMMIGRATION --- Carlos is moving from Mexico to the United States because he got a job in a bank. He had his interview last month, and the bank agreed to hire him because he was willing to work for 10% less than most American workers, even though he has the same qualifications.

Immigration is the entry into a country or region of people who were born or come from another place.

FOREIGN DIRECT INVESTMENT --- A US supermarket chain is going to open a few supermarkets in Europe because a recent survey showed that the chain has a huge potential for profits in Europe.

Foreign Direct Investment is the placement of long-term capital in some part of the world, for the creation of agricultural, industrial and service companies, with the purpose of becoming international.

OUTSOURCING --- A renowned US information technology firm has recently signed a contract with a company based in the Philippines. The Filipino company will handle the accounts of the US firm. The US firm made this decision to reduce labor costs.

Outsourcing is the economic process in which a commercial company transfers the resources and responsibilities related to the fulfillment of certain tasks to an external company, which precisely is dedicated to the provision of different specialized services.