According to the passage, which of the following is/are (an) effects of ‘unbundling’? A. Unfair and exploitative working conditions in developing countries. B. Drop in quality standards of manufactured goods. C. Unemployment for some sections of the workforce in developed countries.

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Accepted Answer

Step 1 — What ‘unbundling’ means:

- The passage describes production being split across locations: design in the U.S., parts from Asia, assembly in China. This is the “unbundling” of production.

Step 2 — How this affects jobs in developed countries:

- Countries with low-cost labour specialise in manufacturing and assembly, while advanced economies concentrate on R&D, engineering and finance. As manufacturing and assembly move abroad, demand for the types of jobs that performed those tasks in developed countries falls.

Step 3 — Conclusion:

- That shift reduces employment opportunities for certain groups of workers in developed economies, producing unemployment for some sections of the workforce there.

FINAL_ANSWER: c

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