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Outsourcing. From the us point of view, how large is the outsourcing phenomenon and what types of jobs are being outsourced:

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Introduction

Outsourcing: In this paper we will consider and explore the question of Outsourcing. Primarily what is outsourcing? Based on a simple breakdown we have: out and sourcing (implying putting the source out). But more accurately outsourcing "is the delegation of tasks or jobs from internal production to an external identity along with the elimination of native staff to staff overseas, where salaries are markedly lower"(the tech-encyclopedia). This research will be divided into four parts, primary our focus will be on measuring the importance of outsourcing and the types of jobs outsourced from the USA. Subsequently will take a closer look to insourcing, to what extent is this phenomenon occurring in United States. As a third part, based on economic theory we will analyze the different benefit and cost of outsourcing. Ultimately we will examine what is the stance of the Bush administration toward outsourcing? From the us point of view, how large is the outsourcing phenomenon and what types of jobs are being outsourced: The outsourcing phenomenon is pretty recent in the United States and its quantitative importance is significant. Why did this phenomenon become so popular in so many sectors? Esssentially, technology improvement was the main engine of this new process. Four main sources contribute to the outsourcing trend: The first one is communication technology, an improvement because it offers services from remote locations. Next there is the development of the internet which enables people to work from different locations and to constantly be in contact with their original working location. ...read more.

Middle

Secondly, it is a good way for the companies to escape from different kind of tariff barriers and protectionism policies. Finally, they strive to take advantage of the American workforce and the advanced technology infrastructure available. What does economic theory have to say about the benefit sand cost of outsourcing? In order to answer this question in the most accurate way possible, I will first look at the gain and loss based on economic theory in the USA, and then I will contrast it with that of underdeveloped country or third world countries. Based on the Hecker-Ohlin model, the country will export the good that uses its abundant factor intensively, and will import the good that uses its scarce factor intensively. The United States is a capital intensive country. However, it is scarce in land and labor in comparison to the third world. Based on the theory the US will gain by outsourcing the products that require a lot of labor or land and produce the ones which are capital intensive. Some people might argue that outsourcing has a negative effect because workers will loose their jobs; this issue is true but only in the short run. The country will balance its loss on the long run. Alfred Sauvy, a French economist famous for defining the expression "third world," explains why country will lose jobs. The "pouring" theory states that disqualified jobs will be outsourced; jobs will be lost, but more high skilled jobs will be created, balancing the original loss. ...read more.

Conclusion

tell him that he should not worry because the fact that he lost his jobs will have a positive effect on our economy. He will certainly never understand it. The president have to (play) in order to both satisfy workers and, company owners, on one hand he knows that it is beneficial for the economy but on the other hand he can not corroborate this idea to the population and workers therefore he is showing himself has against it. Others data and statistics on the growing importance of outsourcing: 1 Bardhan, A, and kroll, C. 2003. Reports, University of California Berkeley. The new wave of outsourcing. 2 1-Engardio, Pete, business Week october 17, 2005 issue 3955 Designing dream machines-in India 3 Jacob F. Kirkegaard research assistant, Institute for international Economics .Fall 2003. Outsourcing-Stains on white Collar. 4 Mike Bucken. Computer world October, 2005 (p12). Microsoft to double workers at Indian unit. 5 Kharif, Olga. Business Week online.8/11/2004. The outsourcing Boomerang. 6 Teresko, John. Industry Week, sept2003. Vol 252, p47. Toyota trucks in Texas. 7 Advanced Materials and processes/ February 2005. Industry insiders. 8 8 Kharif, Olga. Business Week online.8/11/2004. The outsourcing Boomerang 9 Samuelson, Robert J, Newsweek,9/6/2004, vol 144, p58. Bush's Jobs Albatross. 10 Sridhar Krishnaswami. Financial Times Information. February7, 2004. Outsourcing of jobs becomes a poll issues in US. 11 Dan Keeler. Global Finance. April 2004 (p4). Powell takes the outsourcing debate offshore. 12 www.whitehouse.gov/infocus/technology/21stcentury-economy/06.html. Bay shore, NY, march 11, 2004. 13 Daniel T. Griswold. National review. May 3, 2004, Monday. Outsource, Outsource, and Outsource some more. ?? ?? ?? ?? 2 ...read more.

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