Which of the following is one way U.S. workers are affected when jobs are outsourced to less-developed countries?

• A. They may experience higher unemployment due to reduced domestic job opportunities.
• B. They benefit from increased job security in the manufacturing sector.
• C. They are guaranteed higher wages as a result of outsourcing.
• D. They automatically receive government subsidies to offset job losses.

Answer: (A)

Verified step by step guidance

1. Step 1: Understand the concept of outsourcing in microeconomics. Outsourcing occurs when companies relocate production or services to other countries, often to reduce costs by taking advantage of cheaper labor in less-developed countries.
2. Step 2: Analyze the impact of outsourcing on U.S. workers. When jobs move abroad, domestic job opportunities in certain sectors, such as manufacturing, may decrease.
3. Step 3: Recognize that reduced domestic job opportunities can lead to higher unemployment among U.S. workers in affected industries, as fewer jobs are available locally.
4. Step 4: Evaluate the incorrect options: increased job security, guaranteed higher wages, and automatic government subsidies are not typical direct effects of outsourcing on workers.
5. Step 5: Conclude that the most accurate effect of outsourcing on U.S. workers is the potential for higher unemployment due to reduced domestic job opportunities.