...regulatory standards and transparency differs widely among OFCs. Supporters of OFCs argue that they improve the flow of capital and facilitate international business transactions. ‘Outsourcing’ is the management and / or daily execution of a business function by a third-party service provider. Firms have been encouraged to outsource non-critical areas of business in order to focus on core competences (Quinn et al, 1990). There are many different outsourcing models, including the outsourcing of activities to firms in foreign ‘host country’ locations, which is called ‘offshoring’, and is the focus of this report. Offshoring means located or based outside of one's national boundaries. The term offshore is used to describe foreign banks, corporations, investments and deposits. A company may legitimately move offshore for the purpose of tax avoidance or to enjoy relaxed regulations. In the last five years, offshoring has shifted from being a niche strategy to a dominant...
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...No. 2005-12-A Office of Economics Working Paper U.S. International Trade Commission Growth in Services Outsourcing to India: Propellant or Drain on the U.S. Economy? William Greene* U.S. International Trade Commission January 2006 *The author is with the Office of Economics of the U.S. International Trade Commission. Office of Economics working papers are the result of the ongoing professional research of USITC staff and are solely meant to represent the opinions and professional research of individual authors. These papers are not meant to represent in any way the views of the U.S. International Trade Commission or any of its individual Commissioners. Working papers are circulated to promote the active exchange of ideas between USITC Staff and recognized experts outside the USITC, and to promote professional development of Office staff by encouraging outside professional critique of staff research. Address correspondence to: Office of Economics U.S. International Trade Commission Washington, DC 20436 USA No. 2006-01-A OFFICE OF ECONOMICS WORKING PAPER U.S. INTERNATIONAL TRADE COMMISSION Growth in Services Outsourcing to India: Propellant or Drain on the U.S. Economy? William Greene U.S. International Trade Commission January 2006 The authors is with the Office of Economics of the U.S. International Trade Commission. Office of Economics working papers are the result of the ongoing professional research of USITC Staff and are solely meant to represent...
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...Jason Dedrick, School of Information Studies, Syracuse University Kenneth L. Kraemer, University of California, Irvine Abstract Globalization skeptics argue that the benefits of globalization, such as lower consumer prices, are outweighed by job losses, lower earnings for U.S. workers, and a potential loss of technology to foreign rivals. To shed light on the jobs issue, we analyze the iPod, which is manufactured offshore using mostly foreign-made components. In terms of headcount, we estimate that, in 2006, the iPod supported nearly twice as many jobs offshore as in the United States. Yet the total wages paid in the United States amounted to more than twice as much as those paid overseas. Driving this result is the fact that Apple keeps most of its research and development (R&D) and corporate support functions in the United States, providing thousands of high-paid professional and engineering jobs that can be attributed to the success of the iPod. This case provides evidence that innovation by a U.S. company at the head of a global value chain can benefit both the company and U.S. workers. 1 This article represents solely the views of the authors and not the views of the U.S. International Trade Commission or any of its individual Commissioners. This paper should be cited as the work of the authors only, and not as an official Commission document. All of the authors are associated with the Personal Computing Industry Center (PCIC) of the University of...
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...Offshoring: The Future of American Workers Ericka Bolling Shorter University Abstract Outsourcing is the catchphrase shaking up the worldwide financial environment. Offshoring or outsourcing has changed the way many businesses and individual coexist today. Each person today, respects many aspects of offshoring/outsourcing and we have learned that more organizations are using different assets from offshoring to pick up a business advantage. With the changing worldwide economy, and the inordinate expenses connected with keeping an employees at a staffed capacity, a large number of today's organizations and partnerships are outsourcing the generation of merchandise and administrations to outside firms with an end goal to cut expenses. While numerous experts contend that this can decimate nearby economies by cutting employments at home. There are numerous disservices to offshoring which affects our American workers and families and the practice of offshoring has taken a turn in the direction of an unethical practice. For laborers in the US, various occupations are lost permently, numerous workers need to increase new abilities, due to dimished wages because of the intensity of abroad laborers. Fundamentally, American laborers are presently compelled to contend on a worldwide level, as are organizations in this global commerce. Offshoring: The Future of American Workers Offshoring and outsourcing are words that many use interchangeably. Nevertheless, there are keen...
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...------------------------------------------------- Fall 2013 – Mini project “The World Is Flat” November 18, 2013 Part I “The World Is Flat” The Triple Convergence The ten world flatteners mentioned in chapter two of the book “The World is Flat” together shaped a new global platform and embraced a new workflow system. This new platform permitted the world to join forces and interconnect in ways it had never interconnected before. Thanks to this new platform, geography, time, or distance was no longer a barrier for different sides of the world to collaborate. Due to the creation of “complementary software, the internet, and political factors” (Friedman) countries like China, Russia, India and Latin America, opened their borders and led to the fast pace of globalization mentioned by Friedman. Even though these flatteners were created in the 90’s, as they came together, they had to spread, take root, and connect in order to create this flattening. It didn’t just happen overnight. Friedman mentioned in the opening of chapter two talking about his Southwest experience with them giving people the ability to print their own tickets. And then there were multiple companies developing machines that print, fax, scan, email, and make copies. Needless to say these ten factors (flatteners) that were apparently unconnected came together and create a new global platform. This new global platform (web-enabled platform) is a major part of the lives of the people in the...
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...version of the paper prepared for IMRC 2006 conference on Global Competitiveness through Outsourcing: Implications for Services & Manufacturing, Indian Institute of Management (IIM), Bangalore, July 13-15, 2006. Abstract This paper analyses the implications of differing global demographic trends for India’s competitiveness in outsourcing and offshoring. It also briefly notes the implications of differing demographic trends among the Indian states. The paper argues that demographic complementarities with high-income countries provide India with one-time opportunity to sustain its growth rate and occupy all segments of global outsourcing and offshoring activities. India has used the labor cost advantage to gain reasonable market share in these activities. It however faces serious internal and external challenges in sustaining its international competitiveness, particularly with respect to labor cost. With sustained focus on human resource development, diversification and upgradation policies India can continue to atleast maintain its global market share, and help nurture globally competitive companies. Keywords: Outsourcing, Offshoring, Globalization. India, Demographic Trends, -1- I. Introduction Outsourcing has been among the most extensively debated public policy...
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...Notes on The World is Flat (Friedman, 2006) Summary and excerpts from Thomas Friedman’s The World is Flat (2006) by Bill Altermatt CHAPTER 2: THE TEN FORCES THAT FLATTENED THE WORLD page 1 What Tom Friedman means by the phrase “The World is Flat” is that “the global competitive playing field is being leveled…It is now possible for more people than ever to collaborate and compete in real time with more other people on more different kinds of work from more different corners of the planet and on a more equal footing than at any previous time in the history of the world” (p. 8). Friedman believes that this “flattening” of the world is the result of ten factors, which he outlines in chapter 2 of his book: Flattener #1: “11/9/89, The New Age of Creativity: When the Walls Came Down and the Windows Went Up.” On 11/9/89, the Berlin Wall fell (“the Walls Came Down”) and the citizens of the former Soviet empire were suddenly able to participate in the global economy. Friedman uses the fall of the Berlin Wall as a symbol for a general global shift towards democratic governments and free-market economies (where consumers determine prices based on what they’re willing to pay) and away from authoritarian governments and centrally planned economies (in which prices are set by government officials). India made the conversion from a centrally planned economy to a free-market system two years after the Berlin Wall fell, when its economy was on the brink of collapse. Their annual rate of India’s...
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...Definitions: * Human resource management= the management function focused on maximizing the effectiveness of the workforce by recruiting world-class talent, promoting career development and determining workforce strategies to boost organizational effectiveness * Job analysis the examination of specific task that are assigned to each position independent of who might be holding the job at any specific time. * Job description= an explanation of the responsibilities for a specific position * Job specifications: the specific qualifications necessary to hold a particular position * Hr plan= recruitment, selection, training, evaluation,compensation,benefits,separation * Internal recruitment= the process of seeking employess who are currently witshin the firm to fill open positions * Internal advantages=lowers cost of recruitment and training/ reduces risk for the firm, since current employees have a proven track record/boost employee morale by reinforcing the value of experience within the firm * External recruitment= seeking new employees from outside the firm * Structured interviews= involves developing a list of questions beforehand and asking the same questions in the same order to each candidate * Probationary period: specific time frame 3-6 months which a nire hire can prove his or her worth on the job before he or she becomes permanent * Contingent worker: employess who do not expect regular, full time, temporary,indepentdent contrators...
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...Economics for Managers Assignment Assignments Program: MBA (2 Years) Sem-1 Subject Name Permanent Enrollment Number (PEN) Roll Number (SEN) Student Name Managerial Economics INSTRUCTIONS a) Students are required to submit all three assignment sets ASSIGNMENT DETAILS MARKS Assignment A Five Subjective Questions 10 Assignment B Three Subjective Questions + Case Study 10 Assignment C 40 Objective Questions 10 b) Total weightage given to these assignments is 30%. OR 30 Marks c) All assignments are to be completed as typed in word/pdf. c) All questions are required to be attempted. d) All the three assignments are to be completed by due dates (specified from time to time) and need to be submitted for evaluation by Amity University. ( √ ) Tick mark in front of the assignments submitted Assignment ‘A’ Copyright@Amity University Assignment ‘B’ Assignment ‘C’ Page 2 Economics for Managers Assignment Assignment: A Q.1. What are indifference curves? Explain the consumers’ equilibrium under the assumptions of ordinal approach. Q.2. Examine the concept and relationship of Total, Average and marginal costs with the help of suitable diagram. Q.3. Differentiate and elaborate the concepts of returns to scale and law of variable proportions. Q.4. Why is demand forecasting essential? What are the possible consequences if a large scale firm places its product in the market without having estimated the demand for its...
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...ABOUT THE AUTHOR Thomas Loren Friedman was born in Minneapolis, Minnesota, on July 20, 1953, and grew up in the middle-class Minneapolis suburb of St. Louis Park. He is the son of Harold and Margaret Friedman. From an early age, Friedman, whose father often brought him to the golf course for a round after work, wanted to be a professional golfer. He was captain of the St. Louis Park High golf team; at the 1970 U.S. Open at Hazeltine National Golf Club, he caddied for Chi Chi Rodriquez, who came in 27th. That, alas, was as close as Friedman would get to professional golf. In high school, however, he developed two other passions that would define his life from then on: the Middle East and journalism. It was a visit to Israel with his parents during Christmas vacation in 1968–69 that stirred his interest in the Middle East, and it was his high school journalism teacher, Hattie Steinberg, who inspired in him a love of reporting and newspapers. After graduating from high school in 1971, Friedman attended the University of Minnesota and Brandeis University, and graduated summa cum laude in 1975 with a degree in Mediterranean studies. During his undergraduate years, he spent semesters abroad at the Hebrew University of Jerusalem and the American University in Cairo. Following his graduation from Brandeis, Friedman attended St. Antony's College, Oxford University, on a Marshall Scholarship. In 1978, he received an M.Phil. degree in modern Middle East studies from Oxford. That summer...
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...CTE 863 Mid-Term Exam Spring 2012 1. Define four (4) of the following programs, legislation, and/or trends in CTE. (20 pts.) a. Tech Prep- A program that provides technical preparation in a career field that combines at least two years of secondary and two tears of postsecondary education in a sequential course of student without duplication of coursework. Integrates academic, vocational and technical education and if appropriate and available, work-based learning. Provides technical reparation for careers, Builds student competence in core academic and technical areas and leas to an associate or baccalaureate degree or postsecondary certificate in a specific career field and leads to placement in appropriate employment of further education. b. School-Based Enterprises c. Dual Enrollment- provides student with the opportunity to simultaneously earn credit toward a high school diploma and a postsecondary certificate, diploma, or degree. These programs are attractive to teachers and parents because they are academically challenging for students and encourages them to continue their postsecondary education. d. Career Academies e. Career Clusters- industry classification system for education with 16 broad and unique career clusters that provide educators, counselors and parents to help youth and adults identify their career interests and goals and to plan for their future. They consist of all entry-level through professional-level...
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...following the Global Financial Crises in 2007-2008. Furthermore, I will discuss how these challenges are linked to the globalization debate, and provide some policy recommendations as to how this company can internally reverse the situation. Company Overview XYZ is a multinational computer technology and IT consulting organisation, with a continuous history dating back to the 19th century. XYZ manufactures and sells computer hardware and software, and offers infrastructure services, technology services, and business consulting services to help forward-thinking enterprises, institutions and people solve their most complex problems. . XYZ has an industry wide reputation as one of the world's largest computer companies and systems integrator. With over 433,362 (2012) employees worldwide, XYZ is one of the largest and most profitable information technology employers in the world. XYZ holds more patents than any other U.S. based technology company, and has eleven research laboratories worldwide. The company employs scientists, engineers, consultants, and sales professionals in over 170 countries and has earned five Nobel Prizes. In Australia, XYZ has been operating for over eighty years and has significantly invested in the local economy. With natural resources, digital transformation, and sustainable cities at the forefront of the national agenda, XYZ’s global expertise and innovation is helping Australia compete in the world economy. Introduction It could be argued...
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...Outsourcing: The Government, the People and the Companies Jeffrey W. Coleman Webster University Abstract Making a decision about whether or not to move these activities offshore is a decision of far-reaching consequences. Developing countries have been unable to radically alter their industrial structure due to numerous internal institutional and external technological barriers. Consequently, they have sought global participation through outsourcing activities. This is indeed a break from the traditional self-reliant way of doing business. Outsourcing arrangements are technologically and organizationally complex, and present a variety of challenges to manage effectively. Outsourcing benefits include cost savings, quality improvement, and the ability of the organization to concentrate time and resources on its core business. Outsourcing trends change from year to year, and usually involve changes such as progressive outsourcing, cloud sourcing, mergers between organizations from different parts of the world and protectionism. In this paper we will look at a few of these areas such as the how in recent years the business practice of outsourcing jobs has been considered both a blessing for American business and a concern for the American worker, the amount of outsourcing being done and why, the affect on the economy in the United States, and the role government plays in outsourcing. The paper concludes, however, that the trend is just beginning and how our country...
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...Learning Objectives Chapter 1 1 Distinguish between business and not-for-profit organizations. 2 Identify and describe the factors of production. 3 Describe the private enterprise system, including basic rights and entrepreneurship. 4 Identify the six eras of business, and explain how the relationship era—including alliances, technology, and environmental concerns—influences contemporary business. 5 Explain how today’s business workforce and the nature of work itself is changing. 6 Identify the skills and attributes managers need to lead businesses in the 21st century. 7 Outline the characteristics that make a company admired by the business community. iStockphoto The Changing Face of Business S nuggie: The Break-out Blanket Hit I f the first thing you do when preparing to curl up with a good textbook like this one is to reach for your Snuggie, you have plenty of company. Sales of the funky blanket with sleeves were expected to reach as high as 20 million units in just the second year the cozy accessory was available. Combined with the 5 million blankets sold in the first year, that volume will bring the value of total retail sales of the Snuggie to more than $300 million. That’s a respectable profit for an inexpensive product whose unique design and ungainly shape have made it the butt of YouTube parodies and late-night talkshow jokes. It means Allstar Marketing Group, which markets the Snuggie, is obviously doing something ...
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...Chapter 1 INTRODUCTION: GLOBALIZATION AND INTERNATIONAL TRADE We live in a world that is highly interconnected by a bewildering array of complex economic transactions, social and environmental problems, and international political collaborations and conflicts. Examples from global economics are found in the news everyday. A decision by American policymakers to subsidize the production of ethanol, a form of gasoline containing an additive produced from corn, is seen by many as a key reason that grain prices are high around the world. The spectacular emergence of China as a major exporter of manufactured goods has affected wages in both rich and poor countries. As large corporations, such as Microsoft, Intel, Toyota, General Electric, and Siemens have expanded their investments in affiliates in many nations around the world, they have built global production networks that share technological knowledge across locations to produce increasingly complex goods that could be sold anywhere. Today, a major cultural product, such as a Hollywood movie or a jazz band’s latest compact disk, is likely to employ creative personnel from around the world, with various components of the product recorded, mixed or edited in different locations. The importance of international connections in trade, investment, and skilled services can be illustrated by considering the apparently simple act of making and bringing to market an item of apparel, say a fashionable woolen men’s suit. The initial task...
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