Question: The United States is increasingly outsourcing jobs to India having
The United States is increasingly outsourcing jobs to India: having the work done in India rather than in the United States. For example, the Indian firm Tata Consultancy Services, which provides information technology services, increased its work force by 70,000 workers in 2010 and expected to add 60,000 more in 2011 (“Outsourcing Firm Hiring 60,000 Workers in India,” San Francisco Chronicle, June 16, 2011). As a result of increased outsourcing, wages of some groups of Indian skilled workers have in-creased substantially over the years. Use a supply-and- demand diagram to explain this outcome.
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