A large number of U.S. firms send jobs to low-wage nations as it enables them to:

a. get better quality products.

b. politically dominate the economies where they are offshoring.

c. obtain diversified products.

d. raise the price of their products.

e. reduce their cost of production.

Respuesta :

Answer:

e. reduce their cost of production.

Explanation:

As we know mostly, the production processes of the well-known and big companies in USA held in developing countries. Because, the point is about labor cost. The wage rate in USA is more than in developing countries. Then, it will decrease the total cost of the production. Following this, these companies can decrease prices for substitution effect, or even if increase to get more profit. This process is called job outsourcing. The job outsourcing has negative effect on USA employment market. However, this is fact that the persons who are living under lower life standards will have willingness to work and these people live in Asian, African and Latin American countries.