The reasons as to why offshoring operations are not bad for the jobs in the United States of America. Concept Introduction: Offshoring is a business practice that has received much criticism especially within USA. Many Americans think it is unfair and takes unnecessary advantage of artificially created low rates of foreign wages. Further, they believe that it encourages managed exchange rates and promotes labor conditions that are substandard. However, it has also been argued that it is not as bad as it is believed to be.

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Answer 1

Question

Chapter 6, Problem 1DQ

Summary Introduction

Interpretation:The reasons as to why offshoring operations are not bad for the jobs in the United States of America.

Concept Introduction:

Offshoring is a business practice that has received much criticism especially within USA. Many Americans think it is unfair and takes unnecessary advantage of artificially created low rates of foreign wages. Further, they believe that it encourages managed exchange rates and promotes labor conditions that are substandard. However, it has also been argued that it is not as bad as it is believed to be.

Expert Solution & Answer

Explanation of Solution

An offshoring company is an organization that transfers its operational and/or non-operational activities that were at a time handled by locals to companies operating in foreign countries. Many try to emphasize on the bad side of it saying that it makes the unemployment rate to rise and the national income to fall. However, there are solid arguments that prove otherwise. Even if such companies crate an impact upon the unemployment rate, a much wider picture of the situation must be taken into consideration. At a situation where the unemployment rate rises over the full employment rate, the central bank together with the government takes necessary actions by implementing fiscal and monetary policies that are expansionary. This increases the demand in the form of increased government spending, reduced taxes and interest rates. Despite taking a little while, these initiatives shall bring down the level of unemployment back to its original level of full-employment.

Statistics have proven that even amidst offshoring operations creating a certain level of unemployment, some states in the USA have reported higher income levels. Further, given that a product or service could be made at a lesser value in another country, it makes sense to take advantage of that opportunity. On the other hand, organizations carry a responsibility to earn highest possible returns to its investors and shareholders. Hence, if a particular product could be made cheaper, why go for a more expensive option? After all, the gains are being enjoyed by the shareholders back at home and not any other country.

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Answer 2

Question

Chapter 6, Problem 1DQ

Summary Introduction

Interpretation:The reasons as to why offshoring operations are not bad for the jobs in the United States of America.

Concept Introduction:

Offshoring is a business practice that has received much criticism especially within USA. Many Americans think it is unfair and takes unnecessary advantage of artificially created low rates of foreign wages. Further, they believe that it encourages managed exchange rates and promotes labor conditions that are substandard. However, it has also been argued that it is not as bad as it is believed to be.

Expert Solution & Answer

Explanation of Solution

An offshoring company is an organization that transfers its operational and/or non-operational activities that were at a time handled by locals to companies operating in foreign countries. Many try to emphasize on the bad side of it saying that it makes the unemployment rate to rise and the national income to fall. However, there are solid arguments that prove otherwise. Even if such companies crate an impact upon the unemployment rate, a much wider picture of the situation must be taken into consideration. At a situation where the unemployment rate rises over the full employment rate, the central bank together with the government takes necessary actions by implementing fiscal and monetary policies that are expansionary. This increases the demand in the form of increased government spending, reduced taxes and interest rates. Despite taking a little while, these initiatives shall bring down the level of unemployment back to its original level of full-employment.

Statistics have proven that even amidst offshoring operations creating a certain level of unemployment, some states in the USA have reported higher income levels. Further, given that a product or service could be made at a lesser value in another country, it makes sense to take advantage of that opportunity. On the other hand, organizations carry a responsibility to earn highest possible returns to its investors and shareholders. Hence, if a particular product could be made cheaper, why go for a more expensive option? After all, the gains are being enjoyed by the shareholders back at home and not any other country.

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Answer 3

Question

Chapter 6, Problem 1DQ

Summary Introduction

Interpretation:The reasons as to why offshoring operations are not bad for the jobs in the United States of America.

Concept Introduction:

Offshoring is a business practice that has received much criticism especially within USA. Many Americans think it is unfair and takes unnecessary advantage of artificially created low rates of foreign wages. Further, they believe that it encourages managed exchange rates and promotes labor conditions that are substandard. However, it has also been argued that it is not as bad as it is believed to be.

Expert Solution & Answer

Explanation of Solution

An offshoring company is an organization that transfers its operational and/or non-operational activities that were at a time handled by locals to companies operating in foreign countries. Many try to emphasize on the bad side of it saying that it makes the unemployment rate to rise and the national income to fall. However, there are solid arguments that prove otherwise. Even if such companies crate an impact upon the unemployment rate, a much wider picture of the situation must be taken into consideration. At a situation where the unemployment rate rises over the full employment rate, the central bank together with the government takes necessary actions by implementing fiscal and monetary policies that are expansionary. This increases the demand in the form of increased government spending, reduced taxes and interest rates. Despite taking a little while, these initiatives shall bring down the level of unemployment back to its original level of full-employment.

Statistics have proven that even amidst offshoring operations creating a certain level of unemployment, some states in the USA have reported higher income levels. Further, given that a product or service could be made at a lesser value in another country, it makes sense to take advantage of that opportunity. On the other hand, organizations carry a responsibility to earn highest possible returns to its investors and shareholders. Hence, if a particular product could be made cheaper, why go for a more expensive option? After all, the gains are being enjoyed by the shareholders back at home and not any other country.

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Answer 4

Question

Chapter 6, Problem 1DQ

Summary Introduction

Interpretation:The reasons as to why offshoring operations are not bad for the jobs in the United States of America.

Concept Introduction:

Offshoring is a business practice that has received much criticism especially within USA. Many Americans think it is unfair and takes unnecessary advantage of artificially created low rates of foreign wages. Further, they believe that it encourages managed exchange rates and promotes labor conditions that are substandard. However, it has also been argued that it is not as bad as it is believed to be.

Expert Solution & Answer

Explanation of Solution

An offshoring company is an organization that transfers its operational and/or non-operational activities that were at a time handled by locals to companies operating in foreign countries. Many try to emphasize on the bad side of it saying that it makes the unemployment rate to rise and the national income to fall. However, there are solid arguments that prove otherwise. Even if such companies crate an impact upon the unemployment rate, a much wider picture of the situation must be taken into consideration. At a situation where the unemployment rate rises over the full employment rate, the central bank together with the government takes necessary actions by implementing fiscal and monetary policies that are expansionary. This increases the demand in the form of increased government spending, reduced taxes and interest rates. Despite taking a little while, these initiatives shall bring down the level of unemployment back to its original level of full-employment.

Statistics have proven that even amidst offshoring operations creating a certain level of unemployment, some states in the USA have reported higher income levels. Further, given that a product or service could be made at a lesser value in another country, it makes sense to take advantage of that opportunity. On the other hand, organizations carry a responsibility to earn highest possible returns to its investors and shareholders. Hence, if a particular product could be made cheaper, why go for a more expensive option? After all, the gains are being enjoyed by the shareholders back at home and not any other country.

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Answer 5

Chapter 6, Problem 1DQ

Summary Introduction

Interpretation:The reasons as to why offshoring operations are not bad for the jobs in the United States of America.

Concept Introduction:

Offshoring is a business practice that has received much criticism especially within USA. Many Americans think it is unfair and takes unnecessary advantage of artificially created low rates of foreign wages. Further, they believe that it encourages managed exchange rates and promotes labor conditions that are substandard. However, it has also been argued that it is not as bad as it is believed to be.

Expert Solution & Answer

Explanation of Solution

An offshoring company is an organization that transfers its operational and/or non-operational activities that were at a time handled by locals to companies operating in foreign countries. Many try to emphasize on the bad side of it saying that it makes the unemployment rate to rise and the national income to fall. However, there are solid arguments that prove otherwise. Even if such companies crate an impact upon the unemployment rate, a much wider picture of the situation must be taken into consideration. At a situation where the unemployment rate rises over the full employment rate, the central bank together with the government takes necessary actions by implementing fiscal and monetary policies that are expansionary. This increases the demand in the form of increased government spending, reduced taxes and interest rates. Despite taking a little while, these initiatives shall bring down the level of unemployment back to its original level of full-employment.

Statistics have proven that even amidst offshoring operations creating a certain level of unemployment, some states in the USA have reported higher income levels. Further, given that a product or service could be made at a lesser value in another country, it makes sense to take advantage of that opportunity. On the other hand, organizations carry a responsibility to earn highest possible returns to its investors and shareholders. Hence, if a particular product could be made cheaper, why go for a more expensive option? After all, the gains are being enjoyed by the shareholders back at home and not any other country.

Answer 6

Chapter 6, Problem 1DQ

Summary Introduction

Interpretation:The reasons as to why offshoring operations are not bad for the jobs in the United States of America.

Concept Introduction:

Offshoring is a business practice that has received much criticism especially within USA. Many Americans think it is unfair and takes unnecessary advantage of artificially created low rates of foreign wages. Further, they believe that it encourages managed exchange rates and promotes labor conditions that are substandard. However, it has also been argued that it is not as bad as it is believed to be.

Expert Solution & Answer

Explanation of Solution

An offshoring company is an organization that transfers its operational and/or non-operational activities that were at a time handled by locals to companies operating in foreign countries. Many try to emphasize on the bad side of it saying that it makes the unemployment rate to rise and the national income to fall. However, there are solid arguments that prove otherwise. Even if such companies crate an impact upon the unemployment rate, a much wider picture of the situation must be taken into consideration. At a situation where the unemployment rate rises over the full employment rate, the central bank together with the government takes necessary actions by implementing fiscal and monetary policies that are expansionary. This increases the demand in the form of increased government spending, reduced taxes and interest rates. Despite taking a little while, these initiatives shall bring down the level of unemployment back to its original level of full-employment.

Statistics have proven that even amidst offshoring operations creating a certain level of unemployment, some states in the USA have reported higher income levels. Further, given that a product or service could be made at a lesser value in another country, it makes sense to take advantage of that opportunity. On the other hand, organizations carry a responsibility to earn highest possible returns to its investors and shareholders. Hence, if a particular product could be made cheaper, why go for a more expensive option? After all, the gains are being enjoyed by the shareholders back at home and not any other country.

Answer 7

Chapter 6, Problem 1DQ

Summary Introduction

Interpretation:The reasons as to why offshoring operations are not bad for the jobs in the United States of America.

Concept Introduction:

Offshoring is a business practice that has received much criticism especially within USA. Many Americans think it is unfair and takes unnecessary advantage of artificially created low rates of foreign wages. Further, they believe that it encourages managed exchange rates and promotes labor conditions that are substandard. However, it has also been argued that it is not as bad as it is believed to be.

Answer 8

Expert Solution & Answer

Explanation of Solution

An offshoring company is an organization that transfers its operational and/or non-operational activities that were at a time handled by locals to companies operating in foreign countries. Many try to emphasize on the bad side of it saying that it makes the unemployment rate to rise and the national income to fall. However, there are solid arguments that prove otherwise. Even if such companies crate an impact upon the unemployment rate, a much wider picture of the situation must be taken into consideration. At a situation where the unemployment rate rises over the full employment rate, the central bank together with the government takes necessary actions by implementing fiscal and monetary policies that are expansionary. This increases the demand in the form of increased government spending, reduced taxes and interest rates. Despite taking a little while, these initiatives shall bring down the level of unemployment back to its original level of full-employment.

Statistics have proven that even amidst offshoring operations creating a certain level of unemployment, some states in the USA have reported higher income levels. Further, given that a product or service could be made at a lesser value in another country, it makes sense to take advantage of that opportunity. On the other hand, organizations carry a responsibility to earn highest possible returns to its investors and shareholders. Hence, if a particular product could be made cheaper, why go for a more expensive option? After all, the gains are being enjoyed by the shareholders back at home and not any other country.

Answer 9

Expert Solution & Answer

Answer 10

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Answer 11

Ch. 6 - Prob. 1DQ Ch. 6 - Prob. 2DQ Ch. 6 - Prob. 3DQ Ch. 6 - Prob. 4DQ Ch. 6 - Prob. 5DQ Ch. 6 - Prob. 1PA Ch. 6 - Prob. 2PA Ch. 6 - Prob. 3PA Ch. 6 - Prob. 4PA Ch. 6 - Prob. 5PA

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