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(b) The United States is increasingly outsourcing jobs to India: having the work done in India rather than in the United States. For example, the
(b) The United States is increasingly outsourcing jobs to India: having the work done in India rather than in the United States. For example, the Indian firm Tata Consultancy Services, which provides information technology services, increased its work force by 70,000 workers in 2010. As a result of increased outsourcing, wages of some groups of Indian skilled workers have increased substantially over the years. Use a supply- and-demand diagram to explain this outcome. [5 Marks]
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