Part of: Miscellaneous Indian Gk set 343

Moving jobs from more developed to less developed countries is referred to as

Category: Miscellaneous Indian Gk

Hint: Consider the term used for relocating jobs to other countries for cost savings.

Correct Answer: B) Outsourcing

Exam Relevance: UPSC, SSC, Banking Exams, Civil Services

Difficulty: Easy

Explanations:

Outsourcing is a business practice where a company hires a third party to perform functions that were previously handled internally. This practice is often used to reduce costs, improve efficiency, or access specialized skills. In the context of job relocation, outsourcing typically involves moving jobs from more developed countries to less developed countries where labor costs are lower.

The term "outsourcing" is commonly used in the context of international business and economic development. Companies may outsource various functions, including manufacturing, customer service, IT support, and back-office operations. By outsourcing these functions, companies can take advantage of lower labor costs, specialized expertise, and other benefits available in less developed countries.

It is important to distinguish outsourcing from other related terms. For example, "offshoring" specifically refers to the relocation of business processes to another country, often for the same reasons as outsourcing. However, outsourcing can also occur within the same country, where a company hires a third party to perform certain functions.

Other terms like "standard of living," "independence," and "desertification" are unrelated to job relocation. "Standard of living" refers to the level of wealth, comfort, and material goods available to a person or community. "Independence" typically refers to the state of being free from external control or influence, often in a political context. "Desertification" is the process of land degradation in arid or semi-arid areas, which is a significant environmental issue but not related to job relocation.

Understanding the concept of outsourcing is crucial for comprehending global economic trends and business practices. It is a key topic in competitive examinations that test general knowledge and economic awareness.

Option Analysis:
  • Option A: This option is incorrect. "Standard of living" refers to the level of wealth, comfort, and material goods available to a person or community, not the relocation of jobs.
  • Option B: This option is correct. Outsourcing refers to the practice of moving jobs from more developed to less developed countries to reduce costs and increase efficiency.
  • Option C: This option is incorrect. "Independence" refers to the state of being free from external control or influence, not the relocation of jobs.
  • Option D: This option is incorrect. "Desertification" is the process of land degradation in arid or semi-arid areas, not the relocation of jobs.

Mnemonic: Outsourcing: Overseas Utilization of Services

Back to Miscellaneous Indian Gk set 343 – Practice all questions