A WORLD OF WORK
Outsourcing means that companies hand work they used to perform in-house to outside firms.
ADVANTAGES:
v bring down costs è lift profits and boost growth
v specialisation
Due to the advance in technology products have become more complex which made it difficult for one company to do all the work itself. In order to manage the complexity of these products the astute idea of outsourcing represents an ideal solution (e.g. car industry)
DISADVANTAGES:
v drain of jobs,
v higher organisational costs è overview,
Some years ago this phenomenon used to be hailed as a wonder of the new economy.
Nowadays the opinion is less exuberant.
Same forces of globalisation are blamed for relentless export of jobs from rich to poorer countries (depressing proof for the declining competitiveness in engineering skills)
GLOBALISATION
A network between businesses all over the world is established in order to make use of the strengths of different technologies and cultures.
NEGATIVE ASPECTS:
v fierce competition,
v anxiety among people,
v possibilities of expansion for smaller companies are restricted (monopolies)
The movement of work abroad agitates worriers in the West and is a cause of concern among the public.
Global business
work is farmed out to other companies which cam perform this work and fulfil required tasks best (The comprehensive and hence intricate task of making a product is split up into several activities. Then you search for competent companies and assess their performance. In the end you select a specific number of companies which are needed to carry out these activities successfully.)
International busine ...