subject: Offshore outsourcing a transfer of knowledge [print this page] Offshore outsourcing a transfer of knowledge
Offshore outsourcing is the transfer of knowledge easier to create competition where the original companies themselves. Example is China. In the years 1990 and 2000 U.S. auto makers concerned China to make parts for their vehicles, but China is now ready to complete their home-made car sales and that the U.S. markets. Chinese manufacturers are already selling their products such as toys, clothing, cosmetics and electronic goods to overseas markets.
Another problem of Offshoring is the movement of investments from domestic to foreign country. The money could be spent on the various sectors in the domestic market is now devoted to the establishment of factories, training foreign personnel and pay taxes on the foreign market. As a consequence, a decline in property values, wages and tax revenues in the company's home market. However, most economists do not agree with this theory.
When a company increases production in foreign markets their domestic workers, although experienced, are forced to leave their jobs, often for good. It causes a shortage of skilled domestic workers and they get fewer chances to do their work. So the domestic market dependent on foreign markets for goods and services. Strategically, the foreign country weakens the 'degraded' home country. So Offshoring creates competing foreign companies.
Offshoring odbornci often say that the movement of jobs is necessary because of an impending shortage of skilled workers in the domestic market and the booming number of qualified candidates in foreign markets, especially India and China. This system ignores many of the unemployed and skilled workers in the domestic market.
