In one sentence, identify which sector of U.S. employment is affected by outsourcing business services to developing countries.
In 2–3 sentences, explain the effects increased outsourcing would have on the U.S. economy.
In 2–3 sentences, explain the effects of increased outsourcing on developing countries, both economically and geographically.
The sector of U.S. employment affected by outsourcing business services to developing countries is the service sector.
Increased outsourcing would have a mixed effect on the U.S. economy, as it may lead to cost savings for businesses and potentially lower prices for consumers, but it could also result in job losses and wage stagnation in certain industries, leading to income inequality and potential economic instability.
For developing countries, increased outsourcing can bring economic growth and job opportunities, but it may also exacerbate income inequality, exploit cheap labor, and hinder the development of domestic industries, leading to dependency on foreign corporations and potential environmental degradation in areas where outsourcing occurs.