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In broad terms, when U.S. firms locate production internationally, they typically move less skill-intensive activities abroad and keep more skill-intensive activities at home. As we
In broad terms, when U.S. firms locate production internationally, they typically move less skill-intensive activities abroad and keep more skill-intensive activities at home. As we saw in the Offshoring profile the textbook as well in the Offshore simulation, this movement of jobs can change the demand for skilled and unskilled labor and alter the structure of wages both at home and abroad. In addition, when outsourcing occurs between neighboring countries, such as the United States and Mexico or Hong Kong and China, the globalization of production raises the incentive to produce in regions with relatively low-cost access to foreign markets. This, in turn, often alters the location of economic activity inside countries. *** Question | With this in mind, when a U.S. company moves its production facilities to Vietnam to take advantage of lower energy costs, it is benefitting from which aspect of the globalization of production? Group of answer choices Access to even revenue streams Access to lower-cost production inputs Access to technical expertise Access to new markets
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