A Firm Is Most Likely to Outsource Services When

Multiple Choice

A firm is most likely to outsource services when

A) the cost of production is cheaper when done onshore.
B) the labor costs are high in the country where the outsourcing partner is.
C) the human capital is low in the country where the outsourcing partner is.
D) the effectiveness of services produced internally is less than that produced offshore.
E) the goods produced onshore are of better quality than those produced offshore.