Which of the following is one of the problems that can arise in offshore outsourcing?

The selection of the hold-up problems due to asset specificity as a correct response highlights a significant challenge in offshore outsourcing. In this context, asset specificity refers to investments that are made specifically for a particular relationship or transaction and cannot be easily repurposed for alternative uses.

When a company outsources certain operations to an international partner, it may require significant investment in specialized equipment, training, or processes tailored to that specific vendor. If circumstances change—such as the vendor raising prices, failing to deliver on quality, or if the relationship deteriorates—the original investing company finds itself in a precarious position. This can lead to a 'hold-up' scenario where the investing company has limited options and may have to accept unfavorable terms or conditions because they have invested heavily in resources tailored to that specific arrangement.

In contrast, the other options reflect either neutral or positive attributes often aimed for in offshore outsourcing. High rates of unemployment, while potentially an outcome of local businesses closing, does not directly relate to the dynamics of outsourcing itself. Increased operational efficiency and a reduction in labor costs are usually seen as the primary benefits of outsourcing, not problems. Therefore, focusing on the potential challenges of hold-up problems emphasizes the complexities and risks associated with offshore outsourcing that companies must navigate.