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Question
Why developed countries oppose outsourcing?
Options
Outsourcing leads to the outflow of investments and funds from the developed countries to the less developed countries.
MNCs contribute more to the development of the host country than the home country.
outsourcing reduces the employment generation in the developed countries as the same jobs can be done in the less developed countries at relatively cheap wages.
All of the above
Solution
All of the above
Explanation:
Outsourcing to India is beneficial, however, developed countries oppose it since outsourcing causes a movement of income and investments from developed to developing countries. MNCs also contribute more to the growth of the host country than they do to their own. Outsourcing also reduces the number of jobs created in wealthy countries because the same jobs may be done for less money in developing countries. Furthermore, this results in job insecurity in rich countries because work might be outsourced to poor countries at any time.
