What is a likely result in the home country when several large manufacturers move their operations overseas?

Tax revenue and employment in the home country fall as jobs disappear

Crime rises in the home country because factories are abandoned.

New businesses decide not to open their factories in the home country because they fear an economic collapse.

O Prices rise because products now have to be shipped a greater distance.

Question

Business

Hadassah Murillo

10 February, 04:11

What is a likely result in the home country when several large manufacturers move their operations overseas?

Tax revenue and employment in the home country fall as jobs disappear

Crime rises in the home country because factories are abandoned.

New businesses decide not to open their factories in the home country because they fear an economic collapse.

O Prices rise because products now have to be shipped a greater distance.

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Answers (1)

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Karley Padilla · Answer 1

When several large manufacturers move their operations overseas, Tax revenue and employment in the home country fall as jobs disappear, Option A, in the home country.

Explanation:

Job outsourcing means that the company allows their products to be sold in the foreign markets.

But when many manufacturers move their operations overseas, then tax revenues and employment in the home country will fall as number of jobs will decrease.

Jobs will decrease because people will not be able to work in the manufacturing companies. Thus, less revenue will be generated. So, statement A is most apt in the given condition. Other options B, C and D which state that crimes will increase or or new businesses would not open or prices will rise are incorrect.