QUESTION
With which of the following statements would Granger and Harrison both agree?
A) Outsourcing has the potential to cause large-scale shifts in the world economy.
B) Outsourcing does not lead to any job loss for workers in developed economies.
C) Outsourcing leads to net improvements in the world economy.
D) Outsourcing leads to loss of accountability for the originating firm over the foreign company.
E) Outsourcing does not yield any net benefit to companies in developed economies.
ANSWER
Answer: A
Explanation: A) Granger and Harrison would both agree on this, although they would disagree whether such shifts are a good or bad thing for the developed economies over the long run. Granger and Harrison would not agree on Choice B, since Granger emphasizes that developed economies lose jobs due to outsourcing, and Harrison says that new jobs will replace lost jobs in developed economies and, thereby, keep the total number of jobs the same. Harrison would agree with Choice C, but Granger would disagree. Granger may agree with Choice D, but Harrison would probably not. Granger would probably agree with Choice E, but Harrison would definitely not.
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