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Is the United States keen on outsourcing jobs?
No American worker or politician is keen on promoting outsourcing. For example, a software engineer at an Information Technology firm can embrace the thought of losing his/her job to an engineer in India, willing to take half of the pay.
How does the outsourcing approach affect the US economy?
The outsourcing approach changes the historical model of economies of scale, the resulting intangible and hidden trade costs of outsourcing shall have a heavy bearing on the US economy.
How does outsourcing differ from off shoring?
Outsourcing differs from off shoring, it is relative to the firm restructuring and organization of labor within and between societies. Off shoring takes place when a segment of production process is moved off shore; sold or still under the control of a national firm.
Which is an example of an outsourcing relationship?
Good outsourcing relationship presents firms with unmatched opportunities to access a network of business partners. For example, electronic assembling firms in China partner with more than two electronic manufactures, firms sharing one assembler can benefit from the supply chain such as sourcing from a chip maker or glass display maker.
Last Update: Oct 2021
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