How does outsourcing affect the standard of living?

Answer:
The effects of outsourcing is relative to the country where the work is outsourced to or from. To countries where work is outsourced to, it helps boost their economic and living standards with the influx of foreign investment in creating more jobs with better than average local rates. To countries where work is outsourced from, it create a vacuum for unemployment rate to rise and it diminishes the buying power of its local people due to the rising inability to pay for goods, debts and services.
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