In 2020, Bed Bath & Beyond shut down a call center in Layton, Utah. About 300 U.S. workers lost their jobs. The positions were moved overseas and filled by workers in the Philippines. Which of the following is an advantage of this foreign direct investment in the Philippines? Group of answer choices It helped people from the Philippines pursue education at U.S. universities. The Filipino government developed policies that stabilized financial and governmental institutions. It boosted the quality of life for the Filipinos who got these jobs. It increased unemployment in Layton, Utah.
The Correct Answer and Explanation is:
The correct answer is: It boosted the quality of life for the Filipinos who got these jobs.
This business decision by Bed Bath & Beyond is an example of offshoring, a specific type of foreign direct investment where a company relocates a business process to another country. The primary advantage of this action for the host country, the Philippines, is the direct economic benefit it provides to its citizens.
When the call center positions were moved, it created approximately 300 job opportunities for Filipino workers. For the individuals who secured these jobs, the most immediate and significant impact was gaining stable employment. This new source of income would have directly enhanced their quality of life. With a steady paycheck, these employees could better afford essential goods and services such as improved housing, more nutritious food, healthcare, and transportation. Furthermore, this income often supports not just the individual worker but their entire extended family, allowing for investments in the education of children or younger siblings, which creates a positive ripple effect for future generations.
The other options are incorrect. The increase in unemployment in Utah was a disadvantage for the American workers, not an advantage for the Philippines. While stable government policies in the Philippines might attract foreign investment, the investment itself does not create those policies; rather, it responds to them. Finally, while an individual might eventually use their earnings to study abroad, the jobs themselves do not directly provide a pathway to U.S. universities. The most direct and certain advantage of this investment for the Philippines was the improved standard of living for the newly employed workers.
