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Flashcards in Outsorcing Deck (6)
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1
Q

Define outsourcing.

A

Cost saving strategy used by companies who arrange for goods / services to be produced at locations with lower costs.

2
Q

What does it mean that outsourcing is one directional?

A

Manufacturing or service jobs from high wage economies to lower wage countries.

3
Q

Consequences of outsourcing for origin country?

A

Loss of jobs.
De industrialisation.
Structural employment.

4
Q

Loss of jobs.

A

Knock on effect in communities where large company has been outsourced.
Umeployment means less spending in local economy.
Loss of jobs / services.
Demultiper effect.

5
Q

De industrialisation.

A

Of economy.
This is due to outsourcing.
Closure of local suppliers.
Areas decline - derelict.

6
Q

Structural employment.

A

Skill set lost.
People no longer compatible as jobs have moved.
Make take generations for a new workforce with education / skills for local economy