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OUTSOURCING/OFFSHORING

OUTSOURCING/OFFSHORING. OUTSOURCING CONTRACTING WORK OUT TO AN EXTERNAL ORGANIZATION ALLOWS COMPANY TO FOCUS ON CORE COMPETENCIES PROVIDES ACCESS TO GREATER EXPERTISE PROVIDES FLEXIBILITY TO LABOR FORCE OFFSHORING CONTRACTING WORK OUT TO BE PERFORMED IN A FOREIGN COUNTRY

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OUTSOURCING/OFFSHORING

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  1. OUTSOURCING/OFFSHORING • OUTSOURCING • CONTRACTING WORK OUT TO AN EXTERNAL ORGANIZATION • ALLOWS COMPANY TO FOCUS ON CORE COMPETENCIES • PROVIDES ACCESS TO GREATER EXPERTISE • PROVIDES FLEXIBILITY TO LABOR FORCE • OFFSHORING • CONTRACTING WORK OUT TO BE PERFORMED IN A FOREIGN COUNTRY • TAKES ADVANTAGE OF LOWER WAGE RATES AND SKILL LEVELS IN OTHER COUNTRIES • FACILITATED BY DEVELOPMENT IN SHIPPING AND TELECOMMUNICATIONS TECHNOLOGY • MUST ADDRESS ETHICAL ISSUES

  2. ETHICS • PONZI SCHEME—FUNDS FROM NEW INVESTORS ARE USED TO PAY RETURNS TO EXISTING INVESTORS, UNDER PRETEXT THAT THOSE RETURNS ARE INVESTMENT EARNINGS • INSIDER TRADING—WHEN ONE ACTS ON SPECIFIC INFORMATION THAT HAS NOT BEEN MADE PUBLIC YET, PROVIDING AN UNFAIR ADVANTAGE • UNETHICAL VS. ILLEGAL

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