Question

Which of these reasons explain why a company might choose to hire a workforce in another country?

Check all of the boxes that apply.

to lower labor costs

to gain access to specialized skills the company needs

to increase the cost of producing goods

Answer 1

- [x] to lower labor costs — Yes. Companies often hire abroad to take advantage of lower wages or lower overall labor costs.
- [x] to gain access to specialized skills the company needs — Yes. Firms offshore or outsource to tap talent, expertise, or skills not available domestically.
- [ ] to increase the cost of producing goods — No. Companies typically seek to reduce, not raise, production costs.