Globalization and Outsourcing
Introduction
"Its been said that arguing against globalization (and many of the issues related to globalization) is like arguing against the laws of gravity." This statement comes from Kofi Annan, who won the Nobel Peace Prize in 2001 and also became the seventh secretary general of the United States (The Nobel Foundation, 2001). The quote introduces, in its broadest sense, the issue discussed in this paper. While the general idea of globalization is not our primary focus in this report, one of the most controversial subjects to arise out of the globalization phenomenon, offshore outsourcing, is of particular interest to us. Offshore outsourcing (hereafter used interchangeable with offshoring) has been around for some time now. The pressure to transfer business processes over-seas first came from Japan in the 1960's, then from Mexico in the 1990's, and today the pressures are coming from China and India for goods and services, respectively. Offshore outsourcing is the same as any other form of international trade; in fact, it is an extension of international trade. Thus, economic theories such as comparative advantage and absolute advantage apply to the basic idea of offshore outsourcing.
Currently, there are still conflicting points of view over the issue, despite the many economic principles and theories which evidently prove the net worth or net gain' of offshore outsourcing to every economy that participates in it. Many people are in fact proponents of offshoring. There are others, however, who continue to vigorously oppose the entire idea for a number of reasons (discussed later), even as offshoring continues to play an increasingly important role in both the Canadian and the global economy.
"Based on the following evidence, which we shall discuss in greater detail throughout the report (as well as other evidence), we feel that Canada is in a position to benefit greatly from offshore outsourcing."
First, offshore outsourcing will continue to allow
"Its been said that arguing against globalization (and many of the issues related to globalization) is like arguing against the laws of gravity." This statement comes from Kofi Annan, who won the Nobel Peace Prize in 2001 and also became the seventh secretary general of the United States (The Nobel Foundation, 2001). The quote introduces, in its broadest sense, the issue discussed in this paper. While the general idea of globalization is not our primary focus in this report, one of the most controversial subjects to arise out of the globalization phenomenon, offshore outsourcing, is of particular interest to us. Offshore outsourcing (hereafter used interchangeable with offshoring) has been around for some time now. The pressure to transfer business processes over-seas first came from Japan in the 1960's, then from Mexico in the 1990's, and today the pressures are coming from China and India for goods and services, respectively. Offshore outsourcing is the same as any other form of international trade; in fact, it is an extension of international trade. Thus, economic theories such as comparative advantage and absolute advantage apply to the basic idea of offshore outsourcing.
Currently, there are still conflicting points of view over the issue, despite the many economic principles and theories which evidently prove the net worth or net gain' of offshore outsourcing to every economy that participates in it. Many people are in fact proponents of offshoring. There are others, however, who continue to vigorously oppose the entire idea for a number of reasons (discussed later), even as offshoring continues to play an increasingly important role in both the Canadian and the global economy.
"Based on the following evidence, which we shall discuss in greater detail throughout the report (as well as other evidence), we feel that Canada is in a position to benefit greatly from offshore outsourcing."
First, offshore outsourcing will continue to allow
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