Offshoring The Future Of Our Economy Essay - 1464 Words

Offshoring: The Future of Our Economy Outsourcing jobs to foreign countries or offshoring is often viewed as the demise of the American economy. A more accurate view of offshoring is that it is the groundwork for the future of our economy. By enabling businesses to conserve costs, grow and have access to a large untapped pool of talent, offshoring is essentially securing the stability of our economy by securing the vitality of our businesses. In order to remain or become competitive in todays economy, US based companies must outsource jobs to foreign countries. The cost savings that can be derived from hiring employees in underdeveloped countries such as India or China are astounding. According to Agrwa and Farrell (2003), For†¦show more content†¦Francillon, personal communication, April 27, 2006). If a company were to choose China for their offshore location, they would have no employer healthcare costs because the government of China provides social medicine for its citizens. Employer sponsored healthcare coverage is one of the highest priced benefits an employee received. The cost of healthcare is only topped by federally required benefits, such as FICA, federal and state unemployment and workers compensation. The cost of federally required benefits in 2004 added an additional $2.07 an hour to an associates salary (EBRI, 2005). Of course, these costs do not have to be paid when the employee lives in another country. The most innovative companies in the world, while very different in service and style, share one common factor. They all outsource jobs to foreign countries. According to an ongoing survey from the Offshoring Research Initiative, growth is rapidly gaining on costs savings as the most common reason companies outsource. Growth is the goal of all companies. Growth creates profit, and profit creates more growth. For example, Apple saw stock returns of 24.6% between 1995 and 2005 and it is no surprise that their margin of growth in that same timeframe was 7.1% (McGregor, 2006). At IBMs innovation themed leadership forum last April, a man named Sunil B. Mittal gave a speech explaining how he created growth in his telecom company by outsourcing all functions with the exception ofShow MoreRelatedThe Negatives And Positives Of Offshoring1012 Words   |  5 PagesIn this paper the negatives and positives of offshoring are discussed. Offshoring has become a way of life for many businesse s. It is widely accepted that offshoring is a strategic business decision. Many organizations are taking advantage of these opportunities because of the benefits to them and their customers. In order to compete with other companies many businesses are finding it necessary to outsource to other countries. Offshoring has produced some economic benefits but it has also createdRead MoreOutsourcing Is An Alternative For Modern Economic Development1031 Words   |  5 Pagesonly manufacture products in other countries, but also employ and develop jobs in other countries in which reality should be available in the United States. Outsourcing as it may seem beneficial to the companies that employ it, actually harms the economy by decreasing the job market that is present in the United states. Offshore outsourcing has a strong potential to affect a variety of jobs ranging from low paid low and skill jobs to high paid and skill jobs. A princeton economist had predicted thatRead MoreEssay on Offshore Outsourcing1661 Words   |  7 PagesOutsourcing Currently, it has been reported that many of our jobs, as much as one out of every three private-sector jobs are being sent overseas. What is offshore outsourcing? Outsourcing occurs when a firm subcontracts a business function to an outside supplier. Outsourcing is mainly the result of companies who will always pursue the lowest-cost structure, which means less skilled work will move out of the U.S. to emerging economies. Many believes that this is a good thing, becauseRead MoreExploring The Possibilities Of Local Manufacturing And Food Market1705 Words   |  7 PagesThis paper will explore the possibilities of local manufacturing and food market reconstitution. Both topics present the question what is best the future of America? As consumer’s we have the opportunity to bring awareness and doing our part to help boost the local economy with our purchasing power. Individuals can help progress the economy in their community and overall in the United States by supporting local manufacturing or purchasing products â€Å"Made In USA† and by buying from local food marketsRead MoreGlobalization Is Beneficial Or Just About Everyone1343 Words   |  6 PagesThe conventional view has it that globalization is beneficial to just about everyone. Through globalization economies all over the world, rich and poor, grew at a faster pace and incomes of workers have risen through and through. Technology has allowed globalization to reach further into the future and the US government has pursued its own corporate agenda through that. Over the years in the United States, economic growth has slowed, worker’s incomes have become stagnate, and the fracturedRead MoreOutsourcing Tax And Audit Procedures : Implications For U.s.820 Words   |  4 Pagesreading the article â€Å"Offshoring Tax and Audit Procedures: Implications for U.S.-Based Employee Education†, it never even occurred to me that certain accounting works could be outsourced overseas. Accounting requires specifically trained knowledge and skills, unlike most traditional offshoring occupations such as customer service. I have always believed accounting is one of the most secure jobs, because every individual and company needs accountants regardless of whether the economy is going up or downRead MoreGlobalization and Outsourcing6341 Words   |  26 PagesThe quote introduces, in its broadest sense, the issue discussed in this paper. While the general idea of globalization is not our primary focus in this report, one of the most controversial subjects to arise out of the globalization phenomenon, offshore outsourcing, is of particular interest to us. Offshore outsourcing (hereafter used interchangeable with offshoring) has been around for some time now. The pressure to transfer business processes over-seas first came from Japan in the 1960s, thenRead MoreOutsourcing : Outsourcing And Outsourcing1840 Words   |  8 Pagesoffshore outsourcing, is absolutely necessary and helps our country s economy. Outsourcing helps a company focus on those things it does best and hence increase its top line revenues while reducing costs. Outsourcing has provided organic growth to the United States corporations and enabled them to compete more effectively in global markets. This paper seeks to explore what outsourcing is, what the difference between outsourcing and offshoring is, what effects it has on individuals, firms, countriesRead MoreMy School Of Media Arts And Design821 Words   |  4 Pageswere to a capitalist economy, or that I could apply my skills as a fraud examiner for the FBI. The more I learned ab out the profession, the more I learned about the significant role accountant’s play in today’s society. As I continued my studies in accounting, my teachers emphasized the importance of accounting in our economy. I learned how integral accounting is to the business world. Without accountants, the investing public would have no trust in the capital markets, and our stock market wouldRead MoreReassessment of International Instruments in the Field of Migration1026 Words   |  5 Pagesof ethnicities and cultures, mixing of which with the ethnic groups and cultures of the host countries may not always have predictable effects and features. At the same time, according to many experts, neither North America nor Europe in the near future are able to do without a constant inflow of immigrants from as far east as Asia, as far south as Africa and Latin America. A direct consequence of the large-scale migration has been the actual formation of multinational states, accompanied by the

Theory of Planned Behavior Free Essays

In recent years, many models have been presented by different scholars to investigate people behavior and recognize the socio-psychological components that connect with behavior. In this respect, one of the most applicable models is the TPB, which is being increasingly used in the wide range of various fields, particulary in the context of sustainable agriculture. A literature review indicates that the TPB has long been successfully applied to investigate a broad variety of farmers’ behavior and intention such as conservation technology adoption decisions (Lynne et al. We will write a custom essay sample on Theory of Planned Behavior or any similar topic only for you Order Now , 1995), diversification of agricultural production (Senger et al., 2017), identifying main beliefs farmers’ intention to apply improved natural grassland (Borges et al., 2016), using best management practices by farmers (Reimer et al., 2012; Hyland et al., 2018), increasing soil organic matter (Hijbeek et al., 2018), farmers and forest conservation (Dolisca et al., 2009; Meijer et al., 2016), applying pro-environmental activities in the farm (van Dijk et al., 2016), adoption of soil conservation practices (Wauters et al., 2010), engagement in sustainable agricultural practices (Fielding et al., 2008). Kaiser and Gutscher (2003) believed that TPB can predict human behavior in different fields and its application field is not limited to a specific context. TPB is developed theory of reasoned action theory by Ajzen (1991). Ajzen presented â€Å"perceived behavioral control† to complete people’s behavioral framework (Zhou et al., 2016). In addition to perceived behavioral control, there are four other variables in the model: attitude, subjective norms, intention and behavior (Figure 1). Intention bodes individual readiness to carry out a given behavior (Ajzen, 2002) and is identified as the stimulus which is essential for engagement in a specific behavior. The intention is considered as the main predictor of behavior (Clayton, 2004; Ataei and Izadi, 2014; Hoseininia et al., 2017) and is assumed to be an immediate antecedent of behavior (Ajzen, 2002). The more one intends to commite in a behavior, the more likely will be its performance (Clayton, 2004). According to the TPB model, an individual’s intention to carry out a behavior is a function of that individual’s attitude, perceived behavioral control and subjective norms (Ajzen, 1991). Attitude is an individual’s negative or positive assessment of specific behavior performance (Ajzen and Fishbein, 1980). According to the TPB, it should be stated that the more favorable attitude toward a particular behavior, the more possibility that the individual will carry out that certain behavior (Ajzen, 1991; Ataei et al., 2018). PBC can be defined as â€Å"an individual’s perceived convenience or difficulty of a specific behavior performance† (Ajzen and Fishbein, 1980). Fielding et al. (2005) stated that PBC implies â€Å"the extent to which that an individual perceives a behavior to be under his/her volitional control†. Sometimes a person feels that he/she can easily conduct and control a behavior (internal control), and sometimes he feels that a behavior is completely out of control and depends on factors such as time or circumstances, etc (external control). The subjective norms are formed by beliefs about the normative expectations of other people to perform the behaviour (Meijer et al., 2015). People intend to carry out a behavior when they feel that the people who are important for them confirm their behavior (Shin and Hancer, 2016). Group consistency in social norms obliges individuals to behave same to others in the similar group. How to cite Theory of Planned Behavior, Papers

Economics Of Organization And Management

Question: ExplainEconomics Of Organization And Management. Answer: 1a. Lincoln electric started awarding bonus since 1934. The board of directors determined the amount to be awarded as bonus to the workers. It was a merit based bonus system. It was done to boost productivity of the workers. It varied between 78% to 128% of wages. But in the past years it dropped to 40% to 50%. The rating was based on a scale of 100. People scoring more than 100 were reviewed by vice president or corporate committee. They used the piece work system. It is decided by the contribution of workers towards the company. 1b. Initially scientists were only appreciated for their new inventions. But after the merger with Smithkline Beecham, a system called Centre of Excellence for Drug Discovery (CEDD) was introduced. It had six categories. Each CEDD would be led by senior vice president. High quality powerful drugs production providing leads through POC by scientist were the yardstick for bonuses. Scientists had to select people who had expertise or other organization which had license. The main aim for awarding bonuses was creating new drugs which were powerful high in quality. 1c. Lincoln electric had a more inspiring bonus scheme for the workers. One who reported theft was awarded $ 1000.GSK on the contrary, only appreciated scientists for their discoveries initially. Their system for bonus is stricter. 2a.) If Abby chooses work, Bill will choose work because 43. Again if Abby chooses shirk, Bill chooses shirk, since, 21. Abbey chooses work shirk since 43. 2b.) Regardless of what Abbey chooses, Billy will choose shirk. This is his dominant strategy. Both will choose shirk. 2c.) The Nash equilibrium is (2, 2) 2d.) The Pareto efficiency is (Shirk, Shirk). No player has higher pay-off. Wal-mart dominates in retailing can be seen from the following perspectives: Mapping the correct geographics- Establishing stores in small cities towns where big retailers did not have their stores. Cost effectiveness-Keeping overhead low. They tracked competitors price. Workforce who is flexible- The Wal-mart employees are called associates. Workers managers are partners. By the method of cross training, employees could work in more than one department. It shared its profits with the employees IT savvy- Mr. Walton nullified the wholesale system introduced JIT (just in time) inventory method.JIT used real time flow of information from the stores to the suppliers location. Bar codes were used. Computers were used to track store inventory. Electronic data interchange was used. Introduced frozen truck concept. Customer satisfaction- They give 5-10% less as compared to competitors. The traffic of customer is more due to low price scheme. Wal-martlaunched their first mail subscription service called Goodies for customers. Wal-mart mainly targets: Wealthy shoppers called price sensitive affluents People paying only low price who cannot afford more are called value price shoppers LIG people but are obsessed with brand are called brand aspirationals Collaboration/partnership with Sellers- Micro merchandizing was used to increase sales. They built extra net for their suppliers. The suppliers have yearly sales target. Global ambition- They were ambitious to achieve the numero uno position in retailing. Social cause- Initially they did not believe in charity but after 2005 they started donating. They donated $20 million cash merchandise for hurricane Katrina. Each year Wal-mart donates $1 billion to people. 4. Melvin Gordon has total income of $2.5 million. Now, let us assume the Px (price) of good x (cash salary) is $100,000 and Py (price) of good y (prerequisites) is $50,000. So, he can spend ($2.5 million/$25) or spend ($2.5 million/$50) for Good x good y respectively. The combination of two goods on the budget constraint is affordable for Melvin. Also any combination of the two goods beneath the budget constraint is also affordable for Melvin. But the combinations that are farther from the origin are unaffordable by Melvin. Thus, Income, M = PXQX+PYQY. Here, PX=price of good x, PY= price of good y, QX=quantity of good x, QY=quantity of good y. The equation of budget constraint is PXQX+PYQY=M (where M= money or income) QX= (M-PYQY)/PX QY= (M-PXQX)/PY From the above figure, AB= budget constraint. Slope of budget constraint is OA/OB (i.e. negative ratio of the prices of the two goods) (M/PY)/ (M/PX) = (M/PY) (PX/M) =PX/PY The price of good x is $ and that of good y is $. With the given budget constraint combination of goods, he can maximize his utility when his budget constraint is tangent to indifference curve (measuring utility). Now, the slope of indifference curve is ratio of marginal utilities (-MUXMUY) =slope of budget constraint (-PX/PY) Utility maximization is (-MUX/MY)= (PX/PY) Or, (MUX/PX) = (MUY/PY) The indifference curve should be tangent to the budget constraint, the slope of the indifference curve which is the ratio of marginal utilities (-MUx / Muy= slope of the budget constraint (- Price x / Price y). The figure below shows that IC is tangent to BL at point E.Thus, E is the equilibrium point where he can get OC of good x and OD of good y. Due to regulatory measures upon ingredients, Independence Burgers should first of all bring about a change in their menu offerings. They should change their ingredients to chicken or mutton. They should target vegetarians by introducing vegetable burgers. Opening outlets in areas where there is no other fast food joints can boost their business. A low price at the initial stage would attract customers. They should advertise with a catchy tagline as beef it up! They should make corrective measures for their package design, price, and offer money back guarantee. They should set up an assembly line so that burgers can be delivered soon. They should introduce home delivery system. They can gradually start restaurant business offering combo packs with free hot/cold beverages. Festive offers discounts should be introduced.