Outsourcing as the loan agreement between legal entities

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2019-02-22 09:00:32

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As shown by the results of the analysis conducted by group of researchers under the direction of D. Farrell, participation in international trade in services of outsourcing, it is possible to consider as a certain loan agreement between legal entities. Thus, despite common even among supporters of the idea of a mutually beneficial nature of outsourcing opinion, it provides the most benefit or, using the terminology of game theory, “win” is not exporting and importing country. According to their analysis of the U.S.-India trade outsourcing services, based on each dollar invested by American enterprises in outsourcing abroad, the General benefit in the form of added value is to the world economy of 1,45-1,47 dollars, from which 1,12-1,14 dollars. falls on the American economy, and of 0.33$. – in India.

Thus, the analysis of empirical data confirms that the Ricardian idea about mutual benefit of trade for the economies of the countries involved remains equity of outsourcing as one of the modern forms of international trade, provided of course that the contract between legal entities based on the parity basis.

At the same time, not to mention the validity of the position of those researchers (in particular, P. Samuelson and E. Limer), which, while recognizing the correctness of the Ricardian model and, moreover, using it to justify their own conclusions, voicing concern that the increasing volumes of international trade outsourcing services may eventually lead to such a change in the terms of trade, which will entail changes in the ratio of winnings involved in the international outsourcing countries to the benefit of the country exporter and will break thereby this loan agreement between legal entities.

In Other words, their concern is that the international outsourcing will change the current specialization of countries in international division of labor and change the liability of a legal person, in accordance with which the developed countries have a comparative advantage in high-tech areas, where increasingly faced with increased competition from developing and transition economies, provided excessive and rather cheap and highly skilled labor force that they are now able to offer on the international market.

The Described situation is, in our opinion, is explained by the theory of the product life cycle R. Vernon, according to which the production of labour-intensive tradable goods (which, as was substantiated above, the research can be likened outsourcing services) usually move from countries with expensive labour (in which the product is usually developed because of the availability in the country a sufficient number of necessary at the stage of developing a highly skilled workforce and becoming embedded) to countries with low cost labor, necessary for the implementation of batch production and the TES most will break this original loan agreement between legal entities. And this, in turn, allows to maintain a high pace of progress and gives the opportunity to obtain long-term benefit from the international outsourcing to a wide range of the countries involved.

In the course of the study, experts have analyzed the main current in the research community approaches to correlation of outsourcing with traditional forms of international trade. Proceeding from essence of outsourcing is established the validity of consideration of outsourcing as a form of international trade, the analysis of which is possible from the point of view of the implementation of import-export operations, and the consequences generally similar to those of national economies in export-import operations are included in them, the countries which signed the loan agreement between legal entities.

We Can conclude that under the assumption about the similarity of outsourcing services and goods circulating in international trade and the elimination, thereby, differences in the formal characteristics between the concepts of “goods” and “service, serving as the subject of international trade” - the application of the classical Ricardian model of international trade for treatment of outsourcing - and first of all, its mutually beneficial for both countries - would be considered reasonable.

Finally, an analysis of the impact of outsourcing on the domestic labor market of the importing country has identified mainly structural in nature caused by the outsourcing of unemployment and its natural (owing to continuouslychanges in the structure of the national economy and world economy) character.

Thus, the Ricardian idea about mutual benefit of trade for the economies of the countries involved remains equity of outsourcing as one of the modern forms of international trade. This, in turn, confirms that the long-term benefit from the international outsourcing in long-term have subjects both of the countries involved.

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