Title: Global Business Strategies | Introduction to Business [Deprecated]
Headings: 
Global Business Strategies
Learning Outcomes
Introduction
Exporting/Importing
Advantages and Disadvantages
Outsourcing/Offshoring
Advantages and Disadvantages
Licensing and Franchising
Advantages and Disadvantages
Joint Ventures/Strategic Alliances
Advantages and Disadvantages
Foreign Direct Investment (FDI)
Advantages and Disadvantages
Check Your Understanding

Content: Some supporters go further and assert that outsourcing and offshoring raise the gross domestic product (GDP) and increase the total number of jobs domestically, too. This claim is based on the idea that workers who lose their jobs will move to higher-paying jobs in industries where the origin country has a comparative advantage. On the other hand, job losses and wage erosion “at home” have sparked opposition to offshoring and outsourcing. Many argue that the jobs that are shipped overseas are not replaced by better, higher-paying ones. And it’s not just low-skilled workers who are feeling the pain. Increasingly, critics say, even highly trained workers (such as software engineers) with high-paying jobs are finding themselves replaced by cheaper workers in India and China. Some firms, while realizing financial gains from lowering their production costs, are finding that offshoring and outsourcing are very costly in terms of lack of control over product quality, working conditions, and labor relations. For example, companies like Nike and Apple have come under fire by human rights organizations and consumers over reports of worker abuse, dangerous working conditions, and ridiculously low wages. It was recently reported that apparel workers in Bangladesh are sometimes paid as little as $0.21 per hour. We will explore some of the ethical issues raised by offshoring and outsourcing later in the course in the business ethics chapter.