The War in Ukraine Has Devastated Local Designers

EconEye Admin

4 years ago

Support by Design is encouraging U.S. design firms to hire Ukrainians to work remotely from Ukraine. Site Design Group, a landscape architecture and urban design firm in Chicago, has hired an entire Ukraine-based firm of 24 people to work on its projects.—fastcompany.com

Answer the following questions to check your understanding of the story.

How does outsourcing by Site Design Group change Ukraine’s GDP?

Outsourcing by Site Design Group _______________.

a) increases Ukraine’s imports, which decreases Ukraine’s GDP

b) increases Ukraine’s investment, which increases Ukraine’s GDP

c) decreases leisure time for Ukraine’s workers, which has no effect on Ukraine’s GDP

d) increases Ukraine’s exports, which increases Ukraine’s GDP

Ukrainian workers in a Ukrainian firm are providing services to Site Design Group, a U.S. firm. How is this service recorded in Ukraine’s GDP?

Ukrainian workers in a Ukrainian firm are providing services to Site Design Group, a U.S. firm, so Ukraine is exporting services to the United States. An increase in exports increases Ukraine’s GDP.

How does outsourcing by Site Design Group change U.S. GDP?

Outsourcing by Site Design Group _______________.

a) increases U.S. investment, which increases U.S. GDP

b) has no effect on U.S. GDP

c) increases U.S. imports, which decreases U.S. GDP

d) increases U.S. corporate profits, which increases U.S. GDP

Ukrainian workers in a Ukrainian firm are providing services to Site Design Group, a U.S. firm. What are the components of U.S. GDP? Is the labor of these Ukrainian workers a component of U.S. GDP?

Ukrainian workers in a Ukrainian firm are providing services to Site Design Group, a U.S. firm, so the United States is importing a service. An increase in imports decreases U.S. GDP.

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