Outsourcing is the procurement of selected value-added activities, including pro

Question

Outsourcing is the procurement of selected value-added activities, including production of intermediate goods or finished products from independent suppliers. Offshoring is the relocation of a business process or entire manufacturing facility to a foreign country. The business community sees outsourcing from abroad and offshoring as a way of increasing business competitiveness. Others view it negatively, focusing on the loss of local jobs, reduced national competitiveness and decline in standards of living at home.

What public policy strategies can be suggested to mitigate the potential harms of global sourcing at home? (think in terms of technology policy, education policy etc.)

Explanation / Answer

Outsourcing and offshoring are key activities businesses take in order to improve efficiency, increase profit, cut costs, etc. These activities are imperative as globalization is what all the companies are focusing on. This has led to a negative view that outsourcing and offshoring takes the job away from home and give it to someone else. These claims are not completely false but there are policies which can help in mitigating the harsh effect of it

Though there are many laws and rules against a company firing its employees still there is a need of public policy to mitigate the negative effect of joblessness occurred due to outsourcing of the firm operations. Above are some of the strategies that can be used for the same.

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