Using complete sentences, explain what occurs when jobs are outsourced. discuss two benefits and two drawbacks a country may experience when companies outsource their work.

Answer

Hi,

When jobs are outsourced, a company sends some job functions outside the firm instead of handling them in the departments within the company. This is done to allow the company to grow and prevent overhead costs.

The benefits that a country may experience when companies outsource their works include allowing the businesses operating in the country to increase their productivity and efficiency and become more successful and prepared for challenges in the market that might occur in the country. Allowing companies to outsource off-shore will prepare businesses in the country to develop new competence, techniques and skills that could be an advantage as compared to companies in other countries.

However, outsourcing can hit on vital activities in administration and office operation to concentrate on core business functions, which will leave workers unemployed increasing the rate of unemployed individuals in the country affecting the overall GDP. In addition, outsourcing lowers cost of operation and labor. This will mean the labor force that was initially employed will be left unemployed. The country will lose taxes that were initially obtained through these working individuals who will now be jobless.

Best wishes!