The Impact of Production Offshoring on Labor in Developing Countries
The Impact of Production Offshoring on Labor Force in Developing Countries
Name: CHEN, Jiangying
Student ID: 08577449 Date: 30/11/2010
Table of Content 1. Introduction...…………………………………………………………3 2. Definition of Core Concepts…………………………………………..3 a) Production Offshoring.…………………………………………...3 b) Labor Force………………………………………………………4 3. Beneficial Impacts……………………………………………………4 4. Harmful Impacts………………………………………………………7 5. Personal Opinions…………………………………………………….9 6. Conclusion…………………………………………………………...10 7. Appendix…………………………………………………………….11 8. Reference…………………………………………………………….16
Introduction
This paper aims to demonstrate production offshoring’s two-sided influence on the labor force in developing countries from an objective point of view.
Since the 1960s, companies in the developed world have been transferring their production to the lower-cost developing world. This was made possible by the development of transportation and communication channels, especially the World Wide Web, all of which have reduced the costs of offshoring by a substantial amount.
In recent years, with no signs of slowing down, offshoring has been attracting lots of attention from the media and the general public for its double-edged influence on labor force in the developing countries. The most significant and best-studied ones are caused by production offshoring with local contractors, which this paper will mainly focus on, instead of service offshoring, innovation offshoring or building companies’ own factories abroad.
The first part of the paper will provide the definition of core concepts to facilitate later discussion. Then the benefits and harm brought by production offshoring will be discussed in the second and the third part. Finally, the paper concludes the discussion by providing opinions regarding whether these debates are of value or not.
Definition of Core Concepts
1. Production
Name: CHEN, Jiangying
Student ID: 08577449 Date: 30/11/2010
Table of Content 1. Introduction...…………………………………………………………3 2. Definition of Core Concepts…………………………………………..3 a) Production Offshoring.…………………………………………...3 b) Labor Force………………………………………………………4 3. Beneficial Impacts……………………………………………………4 4. Harmful Impacts………………………………………………………7 5. Personal Opinions…………………………………………………….9 6. Conclusion…………………………………………………………...10 7. Appendix…………………………………………………………….11 8. Reference…………………………………………………………….16
Introduction
This paper aims to demonstrate production offshoring’s two-sided influence on the labor force in developing countries from an objective point of view.
Since the 1960s, companies in the developed world have been transferring their production to the lower-cost developing world. This was made possible by the development of transportation and communication channels, especially the World Wide Web, all of which have reduced the costs of offshoring by a substantial amount.
In recent years, with no signs of slowing down, offshoring has been attracting lots of attention from the media and the general public for its double-edged influence on labor force in the developing countries. The most significant and best-studied ones are caused by production offshoring with local contractors, which this paper will mainly focus on, instead of service offshoring, innovation offshoring or building companies’ own factories abroad.
The first part of the paper will provide the definition of core concepts to facilitate later discussion. Then the benefits and harm brought by production offshoring will be discussed in the second and the third part. Finally, the paper concludes the discussion by providing opinions regarding whether these debates are of value or not.
Definition of Core Concepts
1. Production