Is Clothing made in Sri Lanka and sold in the US an example of global outsourcing?

Answer 1

Example of Global OutsourcingFrom my understanding, the answer to your question is 'yes'. That is one example of outsourcing. A few things that you need to know about outsourcing, it doesn't necessarilly involve products. For example, it's common to hear that a lot of telephone operators are outsourced to India. This means that when someone calls to a US company, to ask for information about product information, it is most likely that someone in India is answering the call. Apart from India, one of my friend from Philippines, confirmed that there are also a lot of US company opening up call centers in Philippines as well. According to him, these call centers operate till late at night and early mornings. This is due to the fact that the time zone is different with Philippines and US. The reason for outsourcing can be cost. This means that it's costs less for the US company to allow part of its department or operation to be handled by someone from another part of the world, than it's own employees. Apart from savings in cost, it can also be argued that outsourcing some part of the firm's operation can be beneficial to the firm, as the firm may lack expertise in it. For example, the past few years there have been companies that outsource their human resource department to other firms. What this means is that specialized firm that deal with human resource issues like hiring or finding the right people, assist these companies. We can argue that outsourcing can not only reduce cost, but at times produce better results than doing it on our own.