Case analysis

Topics: United States, Developed country, Saudi Arabia Pages: 3 (726 words) Published: October 12, 2013

Case Analysis

SUMMARY

The article Moving U.S. White-Collar Jobs Offshore discusses how free trade is affecting our world today. “In the popular imagination for much of the past quarter century, free trade was associated with the movement of low-skill, blue-collar manufacturing jobs out of rich countries such as the United States and toward low-wage countries—textiles to Costa Rica, athletic shoes to the Philippines, steel to Brazil, electronic products to Malaysia, and so on” (Hill, 2011). As of late the white-collar high paying jobs have started to become global with these businesses. The article goes on to discuss companies such as Texas Instruments and Fluor Corporation have been moving there high paying white-collar jobs to places such as India and the Philippines so they make more profit. “Fluor Corporation says doing so reduces the prices of a project by 15 percent, giving the company a cost-based competitive advantage in the global market for construction design” (Hill, 2011).

QUESTIONS
6.Reread the Country Focus “Moving U.S. White-Collar Jobs Offshore.”

a. Who benefits from the outsourcing of skilled white-collar jobs to developing nations? Who are the losers?

The ones who benefit from the outsourcing of skilled white-collar jobs to developing nations are the developing nations themselves that are getting these white-collar jobs. It will create more and better jobs in that country. The company will also benefit from this as well. They will increase their profits because of the lower cost of producing their products through less labor costs. By doing this it will give the company a much more competitive advantage in the global market. The losers in the outsourcing of skilled white-collar jobs to developing nations will be the country where to company is from. The people who held those white-collar jobs prior to them moving to a developing country will lose their jobs. This will hurt not only the people themselves but the country as a...

References: Hill, Charles, W. (2011). Global Business Today, 7th Ed. The McGraw-Hill Companies, Inc.
Chap 5. p. 176
Wisegeek.com. (2013). How does outsourcing affect the U.S. economy? www.wisegeek.com.
Retrieved from http://www.wisegeek.com/how-does-outsourcing-affect-the-us-economy.htm
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