outsourcing

Examples of outsourcing in the following topics:

• Answers to Chapter 3 Questions

  • Outsourcing is one firm sends part of its production outside the country to reduce costs.
  • A mutual exchange of products does not occur, and thus, outsourcing is not free trade.

• Expanding into Foreign Countries

  • Reason 9: A company outsources its production to another company, usually located outside the country.For example, Microsoft outsourced its production of X-box consoles to Flextronics, a Singaporean company.Then Flextronics outsourced the production to a Chinese manufacturing plant.Consequently, outsourcing can lower a company's cost, granting it a cost advantage over its competitors.

• Chapter Questions

• The Law of Comparative Advantage

  • Second, this analysis does not include outsourcing.
  • Outsourcing is a firm contracts part of its production to another firm in another country, and it has become very popular.
  • Finally, the communication and transportation costs are decreasing, which strengthens outsourcing and the flow of resources.

• Managing Disbursements

  • Outsourcing and temporary workers are often part of a flexible workforce.

• Capital Leases vs. Operating Leases

  • Operating lease is the smartest way for the outsourcing of industrial equipment.

• Measuring and Protecting against Economic Exposure

  • Technique 2: A company outsources its production or uses low-cost labor.