Outsourcing Flashcards
1
Q
What is outsourcing?
A
Taking manufacturing or service jobs from high wage economies to lower wage economies
2
Q
What are the consequences usually of outsourcing for the original country?
A
Negative
3
Q
How does loss of jobs negatively impact the country?
A
Unemployment means their is less spending in economy, services close down
4
Q
What does the closure of manufacturing companies lead to?
A
The closure of local suppliers - areas go into decline
5
Q
Why are countries often ill equipped for certain jobs?
A
The high skilled workers have been outsourced
6
Q
Case study example of outsourcing?
A
China in Apple
