In about two paragraphs, distinguish between outsourcing and offshoring as they relate to business processes.

What will be an ideal response?


Answer: When a company outsources, it buys from a third party a part or service it used to produce itself. This does not necessarily mean that the product is outsourced abroad, although it can be. For instance, General Motors, a US company, can outsource production of a certain car part to a Chinese company. The Chinese company, in turn, can outsource production of various components of that part to various other Chinese companies.

When a company offshores, it shifts the location of a service or production of a part to a location abroad. This can include companies who outsource to foreign companies - for example, GM offshores production of a certain part to a Chinese company, and the Chinese company outsources (but does not offshore) various components of the production to other Chinese companies. However, offshoring also includes companies who transfer production or services to a location abroad without outsourcing the job. So, for instance, if GM opens a factory in China, and shifts production of a car part to the factory in China, it is offshoring but not outsourcing - it is still an American company running the factory rather than a Chinese one.

Economics

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The resource income earned by those who supply labor services is called

A) profit. B) bonus. C) stock options. D) wages and salaries.

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Anna's Antiques expects to get two bidders for the unique china teacup it sells. Each of the bidders can either have a high-value of $100 or a low-value of $70 with equal probability. If Anna receives $71 from the auction, she can infer that

a. Both the bidders were high value bidders b. Both the bidders were low value bidders c. One of the bidders was high value, while the other was low value d. All of the above

Economics

Sophia is tending to her home garden while awaiting recall from her seasonal part-time job. The Bureau of Labor Statistics would classify Sophia as

a. not in the labor force. b. employed. c. unemployed. d. employed as a household worker.

Economics

Select the graph below that best shows the change in the market specified in the following situation: In the market for Florida oranges, when a major frost damages the orange crop in California

Assume that the graphs show a competitive market for the product stated in the question.



A. Graph A
B. Graph B
C. Graph C
D. Graph D

Economics