Wednesday, August 7, 2019

Please answer two questions and i will upload the materials for the Essay

Please answer two questions and i will upload the materials for the writer - Essay Example An outsourcing website simply defined it as contracting out a non-core business to another company. (, 2003) Countries especially in Eastern Europe are said to have well-developed human resources, and where wage costs are relatively lower. These are good conditions where one can get a vendor company to outsource business operations. (Alexandrova, n.d.) On the other hand, the same report of Prof. Alexandrova (n.d.) enumerated the risks that may occur when outsourcing certain functions of the business to these countries. Firstly, companies lose the ability to become more creative when encountering difficult business challenges. It was claimed that companies lose â€Å"competence to innovate through synergistic interactions†. (Alexandrova, n.d.) Risks are also observed when there is uneven level of technical and legal expertise between two parties in contract negotiations, as this may be possible among companies between developed and less-developed countries. There is also the risk related to the economy of the vendor country. Prof. Alexandrova (n.d.) mentioned that in transition economies in EU, these risks include those associated with exchange rates, policies related to profit repatriation, and those related to taxation. For UK companies, costs would still be the prime consideration when considering the option to outsource. There may be some social implications by resorting to outsourcing, the loss of jobs by British nationals being one. There are reports however, that claim that the benefits can outweigh the costs associated with it if outsourcing is managed well and supported by appropriate business policies. (, 2003) The World Trade Organization (WTO) is an international body composed of 157 countries with headquarters located in Geneva, Switzerland. It was established in January 1, 1995 by the

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