In recent years, the trend among U.S. firms is to outsource the “produ

QUESTION

In recent years, the trend among U.S. firms is to outsource the “production” of certain service activities to developing nations where labor costs are lower.

Indicate whether the statement is true or false.

ANSWER

TRUE
In recent years, the trend among U.S. firms is to outsource the “production” of certain service activities to developing nations where labor costs are lower (e.g., the trend among many U.S. companies to outsource customer care services to places such as India, where English is widely spoken and labor costs are much lower).