Outsourcing and Multinational Enterprises

Powerful Essays
Outsourcing
Jason Lasko
Baker College Online
Caroline Bell
4/24/2011
Abstract

The topic of my research paper will examine the role of outsourcing and the benefits they present for multinational enterprises. There are many people for and against the outsourcing business to different countries other than the domestic nation. Outsourcing gives many people jobs in foreign nations, while taking away work from people in the host nation. International trade has seen more and more outsourcing over the years to keep up with competition. In many cases economic growth of a company or industry requires outsourcing to continue financial growth. The argument amongst most people is that it causes unemployment in the domestic or host nation. Other than jobs being lost domestically there are benefits to outsourcing. Outsourcing entails moving work or labor overseas to increase profit and economic growth. There are benefits to outsourcing regardless if jobs are lost in a certain industry. Generally outsourcing gives a product a cheaper way to be produced giving the consumer the benefit of paying a lower price for a product. There is a loss of jobs up front; however the economy has a way of equalizing by setting a higher demand for more jobs elsewhere. Foreign labor or outsourcing is a great opportunity to increase a developing nation’s economy be providing more work and money into a given country. When jobs are outsourced to other nations, there are more skilled or higher level jobs required to be filled. More often than not are more skilled white collar jobs available for a host nation.

The topic will examine the role of outsourcing and the benefits they present for multinational enterprises. Outsourcing is a strategy that most multinational enterprises or companies look in to for a number of reasons. In the current global economy competition has risen with technology and transpiration advances which of encouraged outsourcing to continue financial growth.



References: Brinkkemper, Sjaak; Jansen, Slinger (2011). Collaboration in Outsourcing: A Journey to Quality Carbaugh, R.J. (2009). International economics (12th ed.). Mason, OH: South-Western Cengage Learning Rubin, Edward: Government by Contract: Outsourcing and American Democracy. (2010). Retrieved April 17, 2013 from http://bi.galegroup.com.bakerezproxy.palnet.info/essentials/article/GALE%7CA219146628/69887f50712113c0e094a7c67d7d7bbb?u=lom_falconbaker Sharma, Vivek; Rajasekaran, K.S.; Sharma, Varum (2011) April 17, 2013 from http://bi.galegroup.com.bakerezproxy.palnet.info/essentials/article/GALE%7CA20797107/2e07b9909e622850de8b457e15a94ddb?u=lom_falconbaker

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