An Economic Analysis of Outsourcing Essay - 1745 Words

An Economic Analysis of Outsourcing Outsourcing can be termed as shifting of major functions (production, back office processing and call centers) of a firm from one area to other which in return gets them more profit. Usually large firms base their head offices in developed countries and operate their productions from other developing countries where they can produce the goods at a cheaper cost. One of the main reasons for outsourcing of jobs from US to other developing countries like China and India is the low cost of production due to cheap labor available which in turn reduces the variable costs (6) involved. Some economists look upon it as a threat to US while others think of it as a way for its progress. The outsourcing of†¦show more content†¦Since labor was cheap they recruited more and increased productivity (6) and get more sales which helps to lower the variable cost involved (6) and increase the profit margin. But during the mid 90s US companies saw that China was offering wages much lower than Mexico, so they began to focus on China. In the beginning monopolistic competitors (11) began move to China and earn huge profits which caught the attention of Oligopolists. They began to invest huge amounts in capital to build factories and start manufacturing products in China. They concentrated for profits earned in the long run. They knew that since wages are low the cost involved in this can be transferred to increasing the production, charge a low price and maximize sales revenue.(11) They made tie-ups with local companies which helped them to study more about doing business in China. Most of the jobs that were outsourced were unskilled jobs which demanded low wage rates w hile the skilled jobs still remained here. The wage rate compared to the US Dollars is very low in Countries. For example the average salary of a software programmer in US is about $60,000 to $80,000 while that of India is just $5,880 to $11,000 (Kansancityfed.org Ââ€" Off shoring in the service sector: Economic Impact and Policy Issues). Taking into consideration this fact as the main reason for companies to go offshore; when they can get the same labor with theShow MoreRelatedPrice Elasticity Scenario647 Words   |  3 Pageshow to price his product so that it can be competitive in the market. This brief analysis will illustrate some of the economic principles that are relevant to the decision that Carlos faces and evaluates different option in which he might select from. Resource Scarcity The notion of the scarcity of resources is at the heart of economics and economic theory. The definition of a scarce resource is as follows (Economic Glossary): A resource with an available quantity less than its desired use. ScarceRead MoreOutsourcing For A Human Resource Essay1698 Words   |  7 Pagestheir call centers overseas including India† (Economic Times, 2013). In view of the aforementioned citation, it presents an intuitive frame of reference into the principal purpose of this module one case assignment. As this case assignment will be composed of an essay that will initially specify whether or not, I as a student of this course oppose or favor outsourcing jobs overseas. Secondly, this essay will deliberate upon the pros and cons of outsourcing overseas to a developing nation. AdditionallyRead MoreCompetitive Analysis of Business Cycles1301 Words   |  5 Pages Institutional Affiliation Competitive Analysis Business Cycles Labor is an important factor of production for all firms. Business information is not perfect at Wal-Mart Stores: economic experts are not dismayed or surprised with the unemployment rates at the stores. Employees at Wal-Mart stores are likely to be affected by frictional unemployment. This occurs at a result of everyday changes in the companys economic structure, which is likely to lead to the death of the firm. EmployeesRead MoreGlobal Stratification721 Words   |  3 Pagesï » ¿Global stratification generally has a negative reputation. Critics see outsourcing as impacting both domestic and foreign countries in a negative way. Domestic economics falters since business is transferred to outside sources, therefore local employment suffers, prices may rise, and people may lose their jobs. Developing countries experience global stratification where, even though the imported business upgrades social conditions, social demarcation and hierarchy occurs where the labor class isRead MoreEssay about Job Outsourcing542 Words   |  3 Pagesperpe tual economic problems. Held within the crumbling economy of today, are many ongoing controversial issues that plague our once healthy nation. One such problem is job outsourcing, an issue with many schools of thought giving the topic its controversial nature. nbsp;nbsp;nbsp;nbsp;nbsp;The exportation of jobs offshore is job outsourcing. This, to some, is believed to be a benefit to our economy. According to a brief report from the National Center for Policy Analysis, â€Å"Increased economic globalizationRead MoreLabor in the United States and Outsourcing Essay1034 Words   |  5 PagesOutsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due toRead MoreOutsourcing American Jobs Essay1561 Words   |  7 PagesIntroduction Outsourcing of American jobs overseas is displacing Americans in the United States. American blue-collar workers and the Middle Class American will soon be a word of the past if the US government continues outsourcing the low-skill jobs overseas. One of the concerns in regards to the outsourcing of jobs is that wages of American jobs versus the wages of the Chinese, Japanese, Indians and Philippians are much less. If these workers were using the same identical technologyRead MoreWhat Major Trends Do You See Affecting The Roles Of Purchasing Managers During The Next Decade?1447 Words   |  6 PagesBrazil, and India, as well as other developing economies. Sustainability is an essential strategy to business, especially the global company. Procurement function will move beyond managing cost and seek to develop supply chains that create and sustain economic and social value. The â€Å"linear economy† of consumption could be rejected and a â€Å"circular economy† based on continuous use and reuse is disposed. The virtue purchasing team is more popular in global company or international company. The integrationRead MoreResearch on the Indian Software Export Sector1362 Words   |  6 Pagesstudy on the topic; I have chose to do the case study of Indian company ‘Infosys’. It was found in 1981 in Bangalore. It is one of the most appreciated and esteemed companies in India that provides technology, business consulting, engineering and outsourcing services. Only a minor share of proceeds comes from domestic sales. It is primarily an exporting firm, and one with global reach. It was first listed on the Bombay Stock Exchange in 1993 and in 1999 on the U.S based NASDAQ. The company specializesRead MoreAnalysis of Three Videos on Outsourcing967 Words   |  4 PagesAssignment: Overseas Outsourcing Introduction One of the most polarizing business practices of the last two decades continues to be the decision on the part of businesses to outsource production of their products to third world nations, The are a myriad of benefits and risks to outsourcing, often as diverse as the companies that choose this strategy as a means to compete globally (Beasley, Bradford, Pagach, 2004). The three videos analyzed in the paper have successfully defined the economic, ethical,

The Frightening Trauma Of Schizophrenia - 1288 Words

The Terrifying Trauma of Schizophrenia Elyn Saks, expert in mental illness, once said, â€Å"The schizophrenic mind is not much split as shattered. I like to say schizophrenia is like a walking nightmare† (Saks). Being affected by schizophrenia is not just a walk in the park; it damages and then destroys the victim’s ability to think. One can define schizophrenia as an illness that affects and damages a human’s brain. Schizophrenia affects victims in many different ways: mentally, physically, and socially. When humans become diagnosed with schizophrenia, it first affects them mentally. Humans affected by schizophrenia see visions that can become terrifying to them. In an article written by Teeple, Caplan, and Stern it states,†¦show more content†¦Sometimes I feel thoughts are being put in my head and that people are reading my thoughts† (â€Å"What is Schizophrenia?†). When hearing all these voices and seeing these visions, sometimes these v ictims tend to become overwhelmed and stressed. Their nightmare turns into a reality overtime when these sufferers decide to finally open their eyes back up from this horrifying illness taking over their brain. This disease is extremely real; everything happening to these patients damages them greatly. Because schizophrenic people see visions and hear voices that make them feel in-prisoned in their own mind, it affects how they live their every day life. Another way this disease affects humans involves physical damage. When people have this horrible illness, they can become mad and very dangerous by getting physical with other humans. In the article â€Å"Violence and Schizophrenia: Examining the Evidence† it states people with schizophrenia have a higher risk of being violent with others. It is also less acknowledged that an amount of patients with schizophrenia do not show any violence at all or just a small amount. (â€Å"Violence and schizophrenia: examining the evidenc e†). Humans with schizophrenia can become violent when these voices and visions tell them to. They tend toShow MoreRelatedDissociative Identity Disorder And Schizophrenia893 Words   |  4 Pagesdisorders such as dissociative identity disorder and schizophrenia are the same. Today’s society often see all mental disorders as one, however, they are very much different. If one was to say someone with multiple personalities is the same as someone who has hallucinations and/or has delusions, they are incorrect, which is why in specific cases such as schizophrenia, the legal term â€Å"not guilty due to mental disorder† should be valid. Schizophrenia, unlike most disorders, is a standout amongst theRead MoreMental Illness And Mental Health Essay936 Words   |  4 Pagesyou have experienced such as abuse or trauma. Having a healthy mind is just as important as having a healthy body. Conversely, just like how you can get a disease physically, you can get one mentally. This is known as mental illness. Mental illness, is a range of illnesses that affects your psychological and emotional well-being. When our minds are affected by a mental illness, usually all parts of the body are affected. It can be given through genetics or trauma/abuse in your lifetime. Some signsRead MoreEssay about Schizophrenia726 Words   |  3 PagesSchizophrenia It is a frightening disorder that strikes about one percent of the world population. It surfaces most frequently during puberty and has the potential to forever destroy the lives of the people who are unfortunate enough to be its victim. The disorder is schizophrenia and it manifests itself by disturbing normal psychiatric behavior. The symptoms of schizophrenia are characterized by both positive and negative symptoms. 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In a famous case of hysteria, Anna O, who suffered from dual personality, the initial trauma was the death of Anna Os father. It was not until the publication of Sybil in 1973 that childhood physical and sexual abuse became widely recognized as precipitants of dissociative identity disorder(Schreiber 43). Since 1973 numerous investigators

Impairment Test in Corporate Accounting- MyAssignmenthelp.com

Question: Discuss about theImpairment Test in Corporate Accounting and Practice. Answer: Introduction This essay consists of various rules and regulations which are applicable on impairment test applied on assets. In this essay, a key study is prepared on the applicable rules and laws which should be followed while reversal of impairment of loss of an individual asset. It is evaluated that Impairment test is necessary to identify the true and fair view of assets of organization. Reversal of an Impairment Loss for Individual Assets Each and every organization has to disclose its financial statement which reflects true and fair view. The impairment of assets is one of the methods to determine the true and fair view of the assets shown in the balance sheet of organization. This impairment test is defined under the international accounting standard 136 which covers all the applicable rules and regulations in determined approach. This international accounting standard-136 describes the classification of assets which could be deployed for the impairment test including impairment test method for financial and non financial assets. This impairment test will help organization to determine impairment loss by estimating the true value of all the assets of organization. It is considered that IAS-36 has several provisions and rules which are implemented with a view to cover the impairment losses from the goodwill and other intangible assets (Duh, Lee and Lin, 2009). Identification of Assets that may be Impaired In this impairment test, assets are impaired when recoverable amount is less than carrying amount. As per the IFRS, It is evaluated that intangible assets of company should be gone through impairment test on each and every reporting period. A company could easily implement impairment test on its assets irrespective of lives and amount of intangible assets (IFRS, 2009). Application of this Standard: IAS 136 is applicable on the following assets such as land, fitting, plant, equipment, building and machineries. However, following assets are not included while implementing impairment test in the organization such as inventories and other goods. Nonetheless, investment in Subsidiaries Company and goodwill are reported as main assets on which impairment test is applied for recoverable amount. Impairment Loss It is the amount of losses which arise after deducting the recoverable amount from the carrying amount of individual assets. In this essay, impairment loss is identified only on individual assets for identifying their true value. Computation of impairment loss Impairment loss = Carrying amount of assets- recoverable amount Where, Carrying amount of individual asset is value of cash inflow which is calculated after deducting all the impairment loss. It is considered that Paragraph 18- 57 of international accounting standard assist accountant to determine recoverable amount of individual assets. Carrying value of assets would be higher of the two following. Value of assets in internal business functioning Or Fair value of CGU less cost of sale Recognizing and measuring an impairment loss: In paragraph 65-108 impairment loss is recognized. Impairment loss is measured only if carrying amount of asset is higher than recoverable amount (Ernst young, 2017). An impairment loss of individual assets shall be allocated in systematic way. Firstly loss will be satisfied from the goodwill then remaining loss will be charged from the others assets on pro rata basis. Reversal of Impairment Loss of Individual Assets The impairment loss of individual assets shall be assessed at the end of period when assets are reported. There is need to be sign that an impairment loss recognized in prior period for an assets other than goodwill that may have decreased. Therefore, impairment loss recognized in earlier period for assets other than goodwill shall be reversed. A reversal of impairment loss for assets shall be determined immediately in profit and loss account, unless the revaluated assets carried at revalued amount as per the IFRS rules and regulations. In addition to this any reversal of computed impairment loss of a revalued assets shall treated as revaluation. However, there is another provision given that an impairment loss recognized for goodwill will not be accounted for reversal subsequent period. For the further explanation of reversal of impairment loss it is given that the increased carrying amount of assets other than goodwill which has been taken for reversal of impairment loss shall not exceed the carrying amount which would be determined and had no impairment loss recognized for the assets in prior year. This reversal of impairment loss will be distributed to the cash generating units on pro rata basis other than goodwill. Therefore, Increment in carrying amount will be used for reversal of impairment losses and recognized as per the regulations given in paragraph 119. In addition to this, reversal of impairment loss of non revaluated assets will be recorded in profit and loss account. On the other hand, impairment of loss would be recorded in balance sheet to reduce the value of assets (Rennekamp, Rupar and Seybert, 2014). Now in the end, it would be inferred that each and every organization should be indulged applying IAS 136 rules and regulation in systematic manner to identify true and fair view of individual assets. References Duh, R.R., Lee, W.C. and Lin, C.C., 2009. Reversing an impairment loss and earnings management: The role of corporate governance. The International Journal of Accounting, 44(2), pp.113-137. Rennekamp, K., Rupar, K.K. and Seybert, N., 2014. Impaired judgment: The effects of asset impairment reversibility and cognitive dissonance on future investment. The Accounting Review, 90(2), pp.739-759. IFRS 2009, Module 27 impairment of assets, London: IFRS foundation. Ernst Young 2017, impairment accounting the basics of IAS 36 impairment of assets, viewed on 18 May 2017 from https://www.ey.com/Publication/vwLUAssets/Impairment_accounting_the_basics_of_IAS_36_Impairment_of_Assets/$FILE/Impairment_accounting_IAS_36.pdf.