Labor Supply and Demand Scenario Essay Example | Topics and Well Written Essays - 500 words

Labor Supply and Demand Scenario - Essay Example The latter sector constituted by men and women without reference to age and educational attainment, as long as they possess high quality of English proficiency and/or other foreign languages, depending on the destination countries. This happens due to the decision of industrialized countries to concentrate on advanced technologies and thereby setting aside the communications side of their companies. Since the latter eats up much of the investment of companies, and considering further that citizens of these countries demand high salaries, international companies opted to shift this demand for labor to countries where salaries are relatively lower. Since outsourcing requires a fixed cost for communications, it is on salaries that companies limit on the cost. If the communication cost is below than the critical level, outsourcing would increase the aggregate output of business service. Trade in business services increases the productivity of semi-skilled labor in the consumer service if the number of business partners is greater than the percentage increase on the fixed cost. This scenario led to the increase of salary scale of the semi-sk