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Globalization by Sarah Powell, Pervez Ghauri

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Outsourcing and Offshoring

Outsourcing and offshoring add a new dimension to the concept of “sourcing.” While countries across the world have for centuries been tapped for their natural resources, their use as a large-scale source of processed or semiprocessed products, labor, skills, and expertise has vastly increased with globalization.

Operating in cost-driven markets

High costs in some countries and the need to compete with lower-cost businesses have resulted in companies relocating production within their own countries or, alternatively, outsourcing manufacturing and service operations to other countries—in other words, “offshoring.” The US footwear company Nike, for example, is a direct or indirect employer of almost one million people. ...

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