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When companies outsource jobs to foreign countries, the price of the outsourced inputs is ...

When companies outsource jobs to foreign countries, the price of the outsourced inputs is effectively reduced. The cross-wage effect on the demand for other workers will be positive
A) if the substitution effect dominates the scale effect.
B) only if the substitution effect is positive.
C) if the scale effect dominates the substitution effect.
D) only if the reduction in prices increases the real wage of all workers.

Textbook

Modern Labor Economics: Theory and Public Policy

Edition: 12^th

Authors: Ehrenberg, Smith

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Peregrinus Author

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Smart ... Thanks!

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