Consider a bicycle producer that initially employs 200 production workers and 10 customerservice workers. When the firm

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Consider a bicycle producer that initially employs 200 production workers and 10 customerservice workers. When the firm outsources its customer-service operation to India, the 10 customer-service workers lose their jobs.

a. Explain why the net effect from outsourcing could be a loss of fewer than 10 jobs in the firm.

b. Under what circumstances will there be a net gain in jobs in the firm?

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Macroeconomics Principles Applications And Tools

ISBN: 123885

8th Edition

Authors: Arthur OSullivan ,Steven Sheffrin ,Stephen Perez

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Question Posted: Nov 25, 2024 03:00 AM

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Consider a bicycle producer that initially employs 200 production workers and 10 customerservice workers. When the firm

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Macroeconomics Principles Applications And Tools

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