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Essay / Research Paper Abstract
This 14 page paper is written in two parts. The first section considers the ways that outsourcing is impacting on international trade. The second part of the paper looks at the way in which the use of third party logistics may help create more efficient supply chains. The bibliography cites 12 sources.
Page Count:
14 pages (~225 words per page)
File: TS14_TElogouts.rtf
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Unformatted sample text from the term paper:
The patterns of outsourcing are such that it is not only the movement of tasks to outside the firm, often there is movement of the tasks to companies external to
the home nation. This cannot fail to have an impact on international trade, influencing the way trade takes place, where trade is seen and the types of trade that occur,
which in turn will impact on the way the economies of the trading partners may, or may not develop. To consider the impact of outsourcing we first need to
look at what is meant by outsourcing. A simple definition is "Performance of a production activity that was previously done inside a firm or plant outside that firm or plant"
(Deardorff, 2001). This is a short but clear definition and indicates the where there is outsourcing there is the movement of a task to a third party, either internal or
external to the area in which the company is operating. Outsourcing is expected to grow by 20% each year in the United
States up until the year 2008, resulting in many jobs moving, in any cases the jobs are moving to other countries (Lewis, 2004). In most cases the cause is cited
as rising costs and the pressures of markets and shareholders to reduce costs. The need to control or reduce costs is the primary driver for outsourcing (Patterson, 2006, Buurma,
2006). To consider this we can look at the case of United Airways one of the major factors appears to have been the
costs associated with a high staff turnover, 50 staff were leaving each month, this increased the recruitment and training budget beyond their cost constraints (Skertic, 2004). Of 588,000 jobs that
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