Assignment ec 410 Example | Topics and Well Written Essays - 250 words

Ec 410 - Assignment ExampleAt 50% no activities that are cheaper to produce in the U.S as compared to Mexico.1).The main difference mingled with outsourcing in manufacturing versus business service is that in manufacturing the company may be given the mandate to manufacture goods local anestheticly using the patent of the parent company. On the other hand, the parent company may enter into a contract with another firm whereby, that firm is given mandate to offer services either locally or in the foreign market (Avadhanam, para.4)2). Skill premium is where the wages earned by both skilled and skilled labors who works in the same field increase relatively to each other. The skilled premium in the U.S has widened wage gap between skilled and unskilled labor for the preceding(a) 30years (Kannan, p.115).3).The effects of outsourcing on workers wages include it reduces the wages earned by workers, skilled workers may obtain more wage benefits as compared to the unskilled. Finally, it ca uses suffering to workers who worked at outsourcing firms.5).It is true that U.S skilled workers fear the security of their jobs due to possibility of outsourcing. This because a firm may find cheaper to outsource labor rather than utilize local labor (Kannan, p.136)1). The three factors that make Kenya an attractive site for Business Process Outsourcing include availability of the 3 fiber optic cables, emergence of 4 submarine cables and availably of highly skilled labor force (The Economist,