As globalization expanded, many U.S. companies shifted manufacturing j

QUESTION

As globalization expanded, many U.S. companies shifted manufacturing jobs to countries that paid lower wages. As the economies in these countries grow and wages rise, how might this impact the U.S. companies that outsourced production?

A) The companies will import more products.
B) The companies will incur lower costs.
C) The companies will shift manufacturing back to the United States.
D) The companies will cut manufacturing jobs.
E) The companies will seek more capital for human resources.

ANSWER

Answer: C
Explanation: C) As labor costs in developing countries come more in line with such domestic labor, the benefits of offshoring decrease. This shift began to occur in the United States in the 2010s.