The global marketplace allows some consumers to benefit from inexpensive importe

Question

The global marketplace allows some consumers to benefit from inexpensive imported goods. It also causes some workers to lose their jobs to low-wage workers in other areas. In this activity, you will explore these dynamics. For your posting this week, consider the following:

How has the global economic downturn, discussed in the opening profile and throughout Chapter 1, impacted the outsourcing of jobs?

Referring to Chapter 1 and the case study at the end of the chapter, pages 34-36 ("Apple's iPhones - Not 'Made in America' "), discuss the general trends in the globalization of human capital.

Explanation / Answer

Outsourcing is handing over the task or job from internal production to external resources. The global financial crisis will have an impact on the outsourcing of jobs and contracts as corporation would like to focus on immediate concerns related to their day to day business activities. Such incidents make the business leaders to think about the distributing the risk by distributing the task to the workforce available in other parts of the world. This helps the corporations to reduce the dependencies from the home country which will have direct impact of financial downturn. Financial meltdown has a cascading effect on other industries which cause the derailment of whole market which means corporation has to suffer heavy looses. With the advent in the trend of Globalization, the companies and resources come closer and are reaching the convergence point where both will generate values for themselves. The economic downturn will reshape the approach to outsourcing projects. The difficult economic conditions will push companies further than before to consider what stays in-house and what gets done by others. Additionally, demands by the business for further cost reduction will need to be addressed in an environment where many companies have already leveraged labor arbitrage. But the advantage of outsourcing doesn’t stick to cheap labor but the availability of cheap resources like technology, training, compensation also drives the trend of outsourcing of jobs. In case of downturn, the offshore outsourcer can easily make the adjustment that they have to make without much impact on its performance. Thus outsourcing of job by corporation has always been a strategic decision in order to earn more profitability and reduce the business risk.

Author Note: Please be specific to the question that need to be answered.

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.