Change in the Relative Demand for High-Skilled/Low-Skilled Labor With greater offshoring from Home to Foreign, some of the activities requiring less skill that were formerly done at Home are now done abroad. It follows that the relative demand for skilled labor at Home increases, and the relative wage rises from point A to point B. The relative demand for skilled labor in Foreign also increases because the activities shifted to Foreign are more skill-intensive than those formerly done there. It follows that the relative wage for skilled labor in Foreign also rises, from point A* to point B*.