National Evaluation Series (NES) Business Studies Practice Test

How has outsourcing jobs in the US electronics industry impacted consumers?

1. It has raised the prices of electronics.

2. It has led to job losses in the US.

3. It has ensured lower prices for consumer electronics.

4. It has produced higher quality products.

The correct answer is: It has ensured lower prices for consumer electronics.

Outsourcing jobs in the US electronics industry has generally allowed companies to reduce production costs, which often translates to lower prices for consumers. By relocating manufacturing to countries with lower labor costs, companies can produce goods more economically. This cost-saving is frequently passed on to consumers in the form of reduced retail prices for electronic products. For example, the production of smartphones, computers, and other electronic devices in countries with established manufacturing infrastructure and lower wages has helped keep the prices of these products competitive in the market. Consumers benefit from access to more affordable electronics, enabling them to purchase higher volumes or better models than might be feasible if production costs remained high due to domestic manufacturing. While outsourcing may lead to concerns about job losses in the US and discussions about product quality, the primary impact felt by consumers in terms of purchasing power is that it has generally ensured lower prices for consumer electronics.