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************** Answer only if you are sure about the correct answer: ************* It is sometimes argued in editorials or Tv' commentaries that the modern wave
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Answer only if you are sure about the correct answer:
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It is sometimes argued in editorials or Tv' commentaries that the modern wave Of outsourcing, especially outsourcing Of services to Pakistan, defies the logic Of the Ricardan model. Let's examine if this is actually the case. The following table presents information on labor productivity in computer component production and call center services in Canada and Pakistan. Assume that Canada has an absolute advantage in both. To complete the following table, choose the number of calls that would be most plausible and consistent with the reality of outsourcing services to Pakistan, and indicate the good in which each courtry has a comparative advantage. Production per Employee Computer Components Call Center Services (Units per hour) (Phone calls per hour) Country Canada Pakistan Comparative Advantage Does the observed pattern Of outsourcing from Canada to Pakistan, where Pakistan exports , defy the logic of the Ricardian model? O Yes call services neither call center services nor cornN-nents both call center services and computer comronents compute r ents Call center services Computer component production Call center services Computer component
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