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Submitted by c16gaspari on April 13, 2008
Category: Business
Words: 2663 | Pages: 11
Views: 95
Popularity Rank: 92,263
Average Member Grade: N/A (Add a Comment / Grade this Paper)
Outsourcing in a Global Economy
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Introduction
Outsourcing is a very controversial topic in today’s economy. This heated debate has many people, especially economists and politicians arguing weather outsourcing is a positive for advanced economies or if it negatively affects them. Economists like Samuelson and Fenoaltea are two economists who are on the adverse side of outsourcing and Blinder is on the pro side.
In the first section I will explain a brief background of what outsourcing is and some of the global issues that are affected by outsourcing. For instance, I will give examples of how it has helped and harmed the economy. In the second part of my paper I will discuss the viewpoints of key players in the debate of outsourcing. I will give Samuelson, Fenoaltea and Paul Craig Roberts’s opinions and theories against outsourcing. I will also show Blinder’s perspective and how it is just a step forward as the next industrial revolution. I will also point out businesses that benefit from outsourcing and give examples of companies who have succeeded and gained from this opportunity. I will then describe a theoretical debate between these opponents and proponents of outsourcing. It will also include some of my own opinions and thoughts about the issue.
Exploring Outsourcing
What exactly is outsourcing? Outsourcing is often used to describe cases in which corporations move part of their operations out of the home country. Companies subcontracting in the same country would be considered outsourcing, but not offshoring. Offshoring is a type of outsourcing that relocates the business processes to another country. This is usually done to reduce labor costs. It can include processes such as manufacturing, production or services. The difference between outsourcing and offshoring is that outsourcing can still be in the same country and offshoring happens when the process is moved to another country entirely.
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