The scope of this document is designed to encompass the outsourcing of jobs in the manufacturing sector of the United States economy. The beneficial and detrimental elements of globalization will be exposed within their respective borders, including the outsourcing of US industrial jobs. Companies in the United States should continue to pursue global trade through outsourcing domestic manufacturing. Internal production refers to production managed and orchestrated by an organization's employees, often using internal personnel and resources. An alternative to this is the concept of outsourcing, defined as the process by which companies outsource internal functions, such as the manufacturing of products, to external suppliers (Parry). Offshoring is a term used specifically to describe the practice of moving internal functions to foreign countries in an attempt to reduce labor or production costs. Businesses benefit from the cost advantage of outsourcing non-core work such as manufacturing. The ability to move capital, technology and resources across almost the entire globe represents a considerable advantage for companies aiming to reduce production costs (Dorgan). It also transfers the risk of production and shifts the burden of infrastructure maintenance to the external supplier (Koulopoulos). An external supplier denotes a company that functions to provide goods or services for another company. For the purposes of this document, the terms “supplier” and “external supplier” are considered synonymous. Kate Vitasek et al. state in Vested Outsourcing: “Usually, if a process is not critical to the organization, it is a candidate for outsourcing” (4). Thomas Koulopoulos, an expert on i...... half of the document ......how-outsourcing-affects-the-american-economy/>.Tiunov, Sergei. “Business Process Outsourcing: Core vs. Non-Core.” Moscow Time. February 15, 2011. November 2, 2011 Web. .Vitasek, Kate, Mika Ledyard, and Karl Manrodt. Outsourcing Acquired: Five Rules That Will Transform Outsourcing. New York: Palgrave Macmillan, 2010. Print. US Department of Labor. “Trade adjustment assistance for workers.” November 1, 2011 Web. . “Fuel Subsidies: Crude Measures.” The economist. May 29, 2008. November 1, 2011 Web. .“Unemployment Rate in the United States.” Commercial economics. October 7, 2011. November 1, 2011 Web. .
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