Question : Outsourcing can lead to increased:
Option 1: Trade barriers and protectionism
Option 2: Cultural diversity and exchange
Option 3: Inequality and exploitation of workers
Option 4: Government control over the economy
Correct Answer: Inequality and exploitation of workers
Solution : The correct answer is (c) Inequality and exploitation of workers
Outsourcing can contribute to increased inequality and exploitation of workers. When companies outsource their operations to countries with lower labor costs, it can result in the displacement of domestic workers who may face challenges in finding alternative employment. This can lead to income inequality within the affected country.
It is important to note that outsourcing itself is not inherently negative, but certain practices associated with outsourcing, such as labor exploitation, can have negative social and economic impacts. Companies should prioritize ethical practices, fair treatment of workers, and compliance with labor standards when engaging in outsourcing activities.
