Question

Andrea lost her job as an accountant because her company gave the contract for keeping accounts to a firm in Asia. The company did so to reduce the costs, as it could find cheap labor in the Asian countries. Andrea lost her job due to which type of economic activity?
A) Recession
B) Inflation
C) Outsourcing
D) Depression
E) Deflation

Answer 1

Answer:

C

Explanation:

Answer 2

The correct answer would be C) Outsourcing. Outsourcing is a common business process used by many companies to cut costs. In this, companies shift or move processes to a third-party, often located outside the country the company is located in (although this is not always the case). This is done because the third party probably does the same job for lower wages than someone in the company itself. This is a cost cutting measure many companies use.