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Table: Labor Requirements Assembly Component Office Services R&D Operations Production Unskilled labor U.S.: 4 U.S.: 3 U.S: 2 U.S.: 1 India: 10 India: 8 India:
Table: Labor Requirements Assembly Component Office Services R&D Operations Production Unskilled labor U.S.: 4 U.S.: 3 U.S: 2 U.S.: 1 India: 10 India: 8 India: 6 India: 4 Skilled labor U.S.: 2 U.S.: 2 U.S.: 2 U.S.: 2 India: 10 India: 10 India: 10 India: 10 The table gives U.S. and Indian labor requirements (hours per unit of output) needed in each of four activities to produce the final product. Suppose that wages of unskilled and skilled workers are $10 and $20 in the United States and $1 and $5 in India, respectively. If trade costs are zero, where is the value chain sliced? Which operations will the United States offshore to India? O a. assembly operations, component production, and office services O b. assembly operations, component production, office services, and R&D O C. assembly operations and component production O d. assembly operations
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