...Thesis: American labor markets are in decline because of global outsourcing which has created jobs overseas, with fewer regulations for the environment and lower costs of operation. Introduction: Outsourcing can happen to almost anyone. It happened to me. I woke up like any other morning. Went to McDonalds for a cup of coffee and then headed to work. Unlike every other morning though I came to work with my department shut down with no warning and an emergency meeting to tell us that we have been outsourced and are not longer needed. Many American jobs everyday are being outsourced to other countries thus hurting the economy of America and the countries that are getting the jobs. Outsourcing is the practice by which a company hires another company to do some aspect of its work. In this presentation I am going to talk to you about three main points: What are the benefits to companies pursuing an outsourcing agenda, the drawbacks to companies pursuing an outsourcing agenda and the drawbacks to the U.S. economy of the pattern of outsourcing. I. What are the benefits to companies of pursuing an outsourcing agenda? a. According to Farrell (2002) At the top of the list, is the financial impetus. To date “cost savings are still a key outsourcing benefit,” with the reduced cost of transferring labor to external settings or even overseas, coming from the access to new markets. (Farrell, 1) b. In the IT world especially, this benefit is paired with...
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...Assignment 3 Market Model Patterns of Change Professor Koros Strayer University The Industry and General Pattern of Change Of Market Model The fast paced industry surrounding health insurance in the United States has experienced rapid growth. There are numerous providers representing a competitive marketplace where no single entity rules over prices. However, the industry is undergoing massive transformation processes and slowly evolving into an oligopoly, where only a few large firms will eventually control market dynamics. Throughout the years there has been more than 500 mergers involving health insurers (Bakhtiari, 2010). Although many small insurance companies operate in the market, the industry Led by WellPoint, 12 health plans cover two-thirds of the enrolment in the U.S. commercial-insurance market (Bloomberg News, 2010) . There are reports that predict over 100 insurers with 200,000 members or less could be pushed out of business, because smaller insurers are unable to invest in the infrastructure and technology to effectively manage care (Bakhtiari, 2010). The good news is that small companies are being merged with larger companies rather than going out of business. The Long and Short Run Behaviors in a “Market Economy” We understand there is no single theory to explain oligopoly behavior, however for this comparison; we will use the Kinked-Demand theory of Oligopoly. The kinked demand model assumes that other firms will ignore the increase, if one firm...
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...involved transfer of goods, services and resources among different nations through the economic integration, trade, immigration, foreign direct investment. It increases degree of interdependence among the nations. According to Swedish author Thomas Larsson, “Globalization is the process of world shrinkage, of distances getting shorter, things moving closer. It pertains to the increasing ease with which somebody on one side of the world can interact, to mutual benefit, with somebody on the other side of the world” (Larsson, 2011) There is relationship between Globalization and economic growth. Globalization play important role in international trade. It brought entire world close to each other, which increase competition at international level. It helped to developed new technology, to increased productivity of industries and their workers, also raised workers wages and it lead to economic growth of every countries. (Haase, 2012) The major impact of globalization was reduction in trade barriers and countries open their economy for free trade. First, European and American people experience globalization which increased their per capita income. This was lead to inequality between developed nations and developing nation, because international trade benefited to developed nations and developing nations were not get any benefit from it. But, after 1980s, developing nations like china, India, also involved in the process of globalization and started manufacturing products. (Carbaugh...
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...1. Describe the industry and explain the general pattern of change of the particular market model Health insurance in the United States providers represent competitive market because they are numerous, variety of choices, and no single entity has much power over prices. The health insurance can be considered as rapid growth industry. Recently, this industry is transforming in a rapid way and evolving into an oligopoly. Insurance markets in many states are eventually controlled and dominated by a few large firms. There were more than five hundred health insurers involved mergers between 1998 and 2008 (Bakhtiari, 2010). Although there are hundreds of small insurance companies operating in the market, the industry Led by WellPoint, 12 health plans cover two-thirds of the enrollment in the U.S. commercial-insurance market (Bloomberg News, 2010). An analyst's report cited in the article predicts there will be 100 insurers with around 200,000 members could be forced out of business. Smaller insurers are increasingly unable to invest in the infrastructure and technology to effectively manage care (Bakhtiari, 2010). However, mergers have been the main power rather than small insurers going out of business. 2. Hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a “market economy” This paper uses Kinked-Demand theory of oligopoly; there is no single theory that explains oligopoly behavior. The kinked demand model assumes that if...
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...Phida HR OUTSOURCING The Human Resources department or support systems are responsible for personnel sourcing and hiring, applicant tracking, skills development and tracking, benefits administration and compliance with associated government regulations. A human resources department is a critical component of employee well-being in any business, no matter how small. HR responsibilities include payroll, benefits, hiring, firing, and keeping up to date with state and federal tax laws. Any mix-up concerning these issues can cause major legal problems for your business, as well as major employee dissatisfaction. But small businesses often don't have the staff or the budget to properly handle the nitty-gritty details of HR. Because of this, more and more small businesses are beginning to outsource their HR needs. HR outsourcing services generally fall into four categories: PEOs, BPOs, ASPs or e-services. The terms are used loosely, so a big tip is to know exactly what the outsourcing firm you're investigating offers, especially when it comes to employee liability. A Professional Employer Organization (PEO) assumes full responsibility for your company's HR administration. Business Process Outsourcing (BPO) is a broad term referring to outsourcing in all fields, not just HR. Application service providers (ASPs) host software on the Web and rent it to users--some ASPs host HR software. E-services are those HR services that are web-based. Both BPOs and ASPs are often referred...
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...1. Describe the industry and explain the general pattern of change of the particular market model Health insurance in the United States providers represent competitive market because they are numerous, variety of choices, and no single entity has much power over prices. The health insurance can be considered as rapid growth industry. Recently, this industry is transforming in a rapid way and evolving into an oligopoly. Insurance markets in many states are eventually controlled and dominated by a few large firms. There were more than five hundred health insurers involved mergers between 1998 and 2008 (Bakhtiari, 2010). Although there are hundreds of small insurance companies operating in the market, the industry Led by WellPoint, 12 health plans cover two-thirds of the enrollment in the U.S. commercial-insurance market (Bloomberg News, 2010). An analyst's report cited in the article predicts there will be 100 insurers with around 200,000 members could be forced out of business. Smaller insurers are increasingly unable to invest in the infrastructure and technology to effectively manage care (Bakhtiari, 2010). However, mergers have been the main power rather than small insurers going out of business. 2. Hypothesize the basic short-run and long-run behaviors of the model in the industry you have chosen in a “market economy” This paper uses Kinked-Demand theory of oligopoly; there is no single theory that explains oligopoly behavior. The kinked demand model assumes that if...
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...Outline OPENING CASE: The Ecuadorian Rose Industry INTRODUCTION AN OVERVIEW OF TRADE THEORY The Benefits of Trade The Pattern of International Trade Trade Theory and Government Policy MERCANTILISM Country Focus: Is China a Neo-Mercantilist Nation? ABSOLUTE ADVANTAGE COMPARATIVE ADVANTAGE The Gains from Trade Qualifications and Assumptions Extensions of the Ricardian Model Country Focus: Moving U.S. White Collar Jobs Offshore HECKSCHER-OHLIN THEORY The Leontief Paradox THE PRODUCT LIFE CYCLE THEORY Evaluating the Product Life Cycle Theory NEW TRADE THEORY Increasing Product Variety and Reducing Costs Economies of Scale, First Mover Advantages and the Pattern of Trade Implications of New Trade Theory NATIONAL COMPETITIVE ADVANTAGE: PORTER’S DIAMOND Factor Endowments Demand Conditions Related and Supporting Industries Firm Strategy, Structure, Rivalry Evaluating Porter’s Theory Management Focus: The Rise of Finland’s Nokia FOCUS ON MANAGERIAL IMPLICATIONS Location First-Mover Advantages Government Policy SUMMARY CRITICAL THINKING AND DISCUSSION QUESTIONS CLOSING CASE: Trade in Information Technology and U.S. Economic Growth Learning Objectives 1. Understand why nations trade with each other. 2. Be familiar with the different theories explaining trade flows...
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...trade, investment, technology, finance and labour. Globalisation has impacted greatly on the economy of India which is the 7th largest economy in the world and the 2nd most populus. India recently opened it’s economy in the last decade from a closed market in 1991.Globalisation has certain impacts on the economy which include economic convergence, economic growth & development, quality of life, distribution of income and wealth. There have been strategies put in place to promote economic growth and development which include. International Convergence International convergence is the tendency of economies becoming more similar in the ways they operate, their consumption patterns, structure of output, economic performance and government systems. The impact of this is an increase in trade dependency with economies formed open and deregulated markets as well as an increase in trade. A positive impact from increased trade is greater efficiency in resource allocation for NIE such as India. Indian exports have grown more than 25% per year to over $100 billion in 2006. (1)It has also led to an increase in level of output as GDP growth for India in 2007 was 9%. (2). As Indian companies began trading on the world market they were forced to become more efficient to allow them to be more competitive. This leads to lower prices and an increase in demand for goods and services in India. As a result of more efficient industries it’s keeps prices relatively low and thus keeps inflation from rising...
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...Question 1: From the case, the characteristics of the toy industry: 1. Seasonal Demand Demand for toys is usually correlated with festive celebrations in a country. One close example is Christmas day which falls in December annually. Coincide with this celebration, significant portion of the toy’s annual sales usually happen towards the end of the year especially in those countries that are dominated by those that celebrate Christmas. The impacts of the seasonal pattern towards the industry are critical as most manufacturers have to consider several factors that lead to sales. The huge demand at certain period of time requires thoughtful planning and smooth execution as minor mistakes can lead to loss of millions of sales value. Just imagine within short period of time toy manufacturers have to produce millions of toys. This requires good management of supplies and synchronization between supplies and production as to minimize costs and ensuring efficiency. Not to forget issues of quality management and lastly the impacts or magnitude of logistic management to the toy manufacturers. 2. Stiff Competition Basically the toy industry consists of many players. As stated in the case, there are 880 companies operated in the industry in 2002. This is 10% lesser than 1997. There are few Key players in the industry such as Mattel, Hasbro, RC2, JAAKS Pacific, Marvel and Lego. In term of sales only two companies managed to register USD1 billion marks, the company are,...
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...BUSINESS PROCESS OUTSOURCING ABOUT BPO BPO stands for Business Process Outsourcing. There is a common misconception that B.P.O. and call centers, mean one and the same. A call centre is a remote location in India wherein calls made by customers abroad are routed to India by means of telecommunication equipments. This call is answered by call centre agents who are trained to speak in an accent which the customer can understand. This accent is commonly referred to as Neutral Accent Coming to the term Business Process Outsourcing, let us understand the term in a simple way by breaking it up. There is a business. Each business has got a process. A process means a specific way or method of doing a job. Those jobs which are routine in nature, are given to countries outside India, to save money by way of salaries. OVERVIEW OF VARIOUS CAREER OPPORTUNITIES IN THE BPO INDUSTRY * Voice Process (Inbound and Outbound) * Semi Voice Process or Back Office Support * Medical Transcription * Medical Billing * Data Entry * E-Mail Support * Knowledge Process Outsourcing * Recruitment Process Outsourcing * Education Process Outsourcing * Legal Process Outsourcing * Technical Writing * Content Writing * Web Designing ABOUT NASSCOM NASSCOM stands for National Association of Software and Servicing Companies It regulates the functioning of the IT and ITES industry IT means Information Technology which includes software programming and ERP...
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...providers to assume a different identity. They take on a western name, learn to talk with an accent, learn about western cultures to help them deal with western clients. This is forcing Indians to live fake western lives while physically being a part of the Indian reality. What is now emerging is a new dominant culture that is taking over that has changed ways of dressing, speaking, and thinking and has injected a new urban culture with the values of the modernized West. Indians are conforming to the processes of globalization in the name of progress. The cost is losing their identity, culture, heritage and traditions. Some of these cultural changes are reflected in values and religious practices, social interaction and roles and spending patterns. These changes also affect the US companies that have chosen to align or outsource with companies in India. Indians traditionally value peaceful co-existence, spirituality, respect for elders, nature, art, seeking prosperity, strong family ties and hospitality. It is highly collective in terms of society and family and less importance given to individualism. Indian myths, legends and stories stress that good human beings think of the welfare of others before their own. With the impact of call centers, globalization with its emphasis on individualism and secularism is promoting worldviews that differ from the traditional route and has left the Indian youth with a spiritual void and a mix of cultural identities. India is fast assimilating...
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...Competency mapping is the process of identification, evaluation of employee competencies and organizational requirements and establishing perfect parity between them. Objectives of competency mapping: To align competencies with business strategies To find a match between a job and job incumbent. To plan for career and succession. To train and develop employees. To achieve individual and organizational growth. 3) Outsourcing of HR : BPO is the assignation of non-core activities of an organization to other organizations for which such activities are core. The HR issues in BPO sector are four fold viz., (i) HRM aspects of client organizations ii) outsourcing of HR functions (iii) outsourcing human resources, (iv) General. The main advantages of outsourcing human resources are To reduce cost of human resources. To avoid the complexities in HRM To avoid evil effects of overstaffing. 4) HR Balance Score card: Robert S. Kaplan and David. P Nortan D.P. 1996[ 2] published about Balanced scorecard, which is a performance planning and measurement technique. BSR is the outcome of research conducted by them for one year involving 12 companies. .Kaplan and David. P Nortan felt that Balanced Score card...
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...The international division of labour refers to the breaking up of the production process in different locations around the world. It can involve a firm setting up offshore branches or divisions in different countries, outsourcing tasks to businesses in other countries, or outsourcing employment to individuals in other countries using technology. Firms have a range of options available to them globally: choosing to produce in a rich country versus a poor country, an urban area versus a non-urban area, outsourcing different functions to different locations, using technology to outsource functions without relocation. Advantages of Global division of labour - Access to a much larger labour force for firms - More competitive labour market drives down labour costs, eg. Wages and working conditions such as sick leave – this leads to falling average costs, increased profits, rising income, employment and economic growth - Increased employment opportunities for employees in developing countries - Increased wages for employees in developing countries - Potential for employees to organise globally to share information and to improve wages and working conditions | Disadvantages of global division of labour - Loss of jobs for employees in the home country - ‘race to the bottom’ of wages due to international competition for employees in import-competing industries -Exploitation of employees in developing countries, leading to poor working conditions, job insecurity,...
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...Levels of strategy * Corporate * Business General environment (Macro) – broad collection of factors that directly or indirectly have the potential to influence every firm in ever industry within the economy PESTDG framework * Identify trends * Explain trends * State if opportunity or threat * Explain why is it an opportunity or threat Segment | Trends | Political / Legal | Changes to workplace relations, carbon tax law | Economical | Rising interest rates, GFC, inflation rate, unemployment rate | Socio-cultural | Climate change, increase in casual workers, greater concern for health | Technological | Wireless communications, cloud computing, growth in hand held devices | Demographical | Aging population, growing disparity in income level | Global | Growth in Chinese and Indian economy, free trade agreements | Industry environment (micro) – the set of factors that influences a firm and its competitive actions and responses PORTER’S 5 Forces Force | Characteristics | Threat of new entrant | Capital requirements, economies of scale, product differentiation, switching cost, brand identity, access to distribution channels, cost disadvantages | Power of supplier | High...
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...entities in two different countries. People or entities trade because they believe that they benefit from the exchange. They may need or want the goods or services. While at the surface, this many sound very simple, there is a great deal of theory, policy, and business strategy that constitutes international trade. Below are the different trade theories that have evolved over the past century and which are most relevant today. Plus the factors that impact international trade and how businesses and governments use these factors to their respective benefits to promote their interests. What Are the Different International Trade Theories? In more recent centuries, economists have focused on trying to understand and explain these trade patterns. To better understand how modern global trade has evolved, it’s important to understand how countries traded with one another historically. Over time, economists have developed theories to explain the mechanisms of global trade. The main historical theories are called classical and are from the perspective of a country, or country-based. By the mid-twentieth century, the theories began to shift to explain trade from a firm, rather than a country, perspective. These theories are referred to as modern and are firm-based or company-based. Both of these categories, classical and modern, consist of several international theories. Classical Country-Based...
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