Offshoring, Outsourcing and Production Fragmentation

Offshoring, Outsourcing and Production Fragmentation
Author: Mariusz-Jan Radło
Publisher: Springer
Total Pages: 229
Release: 2016-03-29
Genre: Business & Economics
ISBN: 113757125X

In this book, Radlo increases understanding of offshoring, outsourcing and international production fragmentation, and explains the impact of this phenomenon on the economies and enterprises. Key features include a comprehensive theoretical explanation of offshoring and outsourcing at both macroeconomic and microeconomic level, as well as an explanation of practical consequences of the mentioned phenomenon for the development of the global economy, national economies, concrete industries and enterprises. Unlike other publications, which are often characterized by narrow management or a macroeconomic approach to the analysis of offshoring and outsourcing, Radlo's text offers real insight into the global impact of production fragmentation.

International Fragmentation of Production

International Fragmentation of Production
Author: Nobuaki Yamashita
Publisher: Edward Elgar Publishing
Total Pages: 189
Release: 2010-01-01
Genre: Business & Economics
ISBN: 184980723X

Using state-of-the-art econometric tools, this book examines the implications of international fragmentation of production for the performance of the Japanese manufacturing industry.The impact of the ongoing process of international fragmentation of production and outsourcing has become a highly contentious issue in developed economies such as the US and Japan. Concerns about deindustrialisation and large-scale job losses - 'the export of jobs' have generated a political backlash against multinationals and globalisation. Using detailed data from Japanese multinationals this book rigorously analyses the Japanese experience and compares and contrasts it with the experience of US manufacturing. The study finds no empirical evidence that expansion of multinational activities in foreign countries produces job losses in the home country. Indeed, when demand induced indirectemployment effects are taken into account the increased profitability of Japanese firms is likely to have increased overall employment in Japan. However, the shift of labour intensive activities to low wage economies associated with the international fragmentation of production generates adjustment pressures and a structural shift in favour of skilled workers in Japanese manufacturing.

Fragmentation

Fragmentation
Author: Sven W. Arndt
Publisher: OUP Oxford
Total Pages: 270
Release: 2001-02-08
Genre: Business & Economics
ISBN: 0191589063

"Fragmentation" is a term used in this volume to describe cross-border component specialization and production-sharing. Examination of recent trade data suggests that offshore sourcing of parts and components, as well as offshore assembly, are assuming an increasing role in the world economy. The theoretical implications of this type of specialization are examined in several chapters with the aid of both Ricardian and Heckscher-Ohlin trade models. Production is first decomposed ("fragmented") into its constituent parts and activities, and then it is at this level that factor-intensities and technologies are calibrated. The implications of intra-product specialization and component trade are investigated under conditions of free, restricted, and preferential trade. The role of multinationals is explored and the importance of cross-border service-links among component activities is examined. Overall, extension of the principle of comparative advantage beyond products to the realm of parts and components is welfare-enhancing. Industries take advantage of offshore sourcing in order to reduce costs and increase competitiveness. Component specialization offers new and additional opportunities for the exploitation of scale economies. Across a broad range of conditions, it raises output and employment. Its effects on wages are spelled out. Trade between advanced, high-wage and developing low-wage countries is an obvious candidate for the two-way application of component specialization. The empirical part of the volume presents an evaluation of new data which allow the separation of trade in components and in final products. It also provides assessments of the role of component specialization in the trade of several countries and regions. In addition to their relevance for trade theorists and country specialists, the studies collected in this volume have interesting implications for the conduct of trade policy. They contradict claims that trade with low-wage countries must be welfare-reducing and they suggest new approaches to industrialization and economic development.

Production Fragmentation and Outsourcing

Production Fragmentation and Outsourcing
Author: Ronald W. Jones
Publisher:
Total Pages: 0
Release: 2009
Genre:
ISBN:

Globalization has its detractors as well as supporters. Concerns have been expressed about the greater ease of fragmenting the production process so that more parts can be outsourced to a variety of countries. Highly developed regions worry about the possibility of greater unemployment or lower unskilled wage rates. Less developed regions are concerned that they may not possess a comparative advantage in the service link activities that promote fragmentation. The paper discusses these issues, with special emphasis on India and China.

Technology and Production Fragmentation

Technology and Production Fragmentation
Author: Teresa C. Fort
Publisher:
Total Pages: 54
Release: 2016
Genre: Communication
ISBN:

This paper provides direct empirical evidence on the relationship between technology and firms' global sourcing strategies. Using new data on U.S. firms' decisions to contract for manufacturing services from domestic or foreign suppliers, I show that changes in firm use of communication technology between 2002 to 2007 can explain almost one quarter of the increase in fragmentation over the period. The effect of firm technology also differs significantly across industries; in 2007, it is 20 percent higher, relative to the mean, in industries with production specifications that are easier to codify in an electronic format. These patterns suggest that technology lowers coordination costs, though its effect is disproportionately higher for domestic rather than foreign sourcing. The larger impact on domestic fragmentation highlights its importance as an alternative to offshoring, and can be explained by complementarities between technology and worker skill. High technology firms and industries are more likely to source from high human capital countries, and the differential impact of technology across industries is strongly increasing in country human capital.

The Factory-free Economy

The Factory-free Economy
Author: Lionel Fontagné
Publisher: Oxford University Press
Total Pages: 383
Release: 2017
Genre: Business & Economics
ISBN: 019877916X

An economic analysis of de-industrialization that considers the ongoing transformation of the industrial economies and the consequences for economic policy.

The Global Factory

The Global Factory
Author: Peter J. Buckley
Publisher: Edward Elgar Publishing
Total Pages: 307
Release: 2018-02-23
Genre: Business & Economics
ISBN: 1786431335

This key new book synthesises Peter Buckley's work on ‘the global factory’ – the modern networked multinational enterprise. The role of interfirm networks, entrepreneurship and cooperation in the creation and management of global factories leads to a discussion of their governance, internal knowledge transfer strategies and performance, including their role in potentially combating societal failures. Emerging country multinationals are examined as a special case of global factories with a focus on Indian and Chinese multinationals, their involvement in tax havens and offshore financial centres, the performance and processes of their acquisition strategies – all seen as key aspects of globalisation.

Outsourcing and Offshoring

Outsourcing and Offshoring
Author: Mário Franco
Publisher: BoD – Books on Demand
Total Pages: 130
Release: 2021-07-07
Genre: Business & Economics
ISBN: 1839684690

Outsourcing and offshoring are typically viewed as phenomena allowing competitive advantages for organizations, but some studies have not included the risks, benefits, and challenges of these types of strategies. As such, this book fills this gap by combining several studies from different perspectives. The chapters follow several approaches and applications that researchers explore in different contexts. This book adds to the body of knowledge in outsourcing and offshoring areas and shows how these strategies can stimulate organizations’ development in various countries and regions worldwide.

Offshore

Offshore
Author: Jamie Peck
Publisher: Oxford University Press
Total Pages: 248
Release: 2017-02-23
Genre: Social Science
ISBN: 0191040843

Offshore outsourcing- the movement of jobs to lower-wage countries- is one of the defining features of globalization. Routine blue-collar work has been going offshore for decades, but the digital revolution beginning in the 1990s extended this process to many parts of the service economy too. Politically controversial from the beginning, "offshoring" is conventionally seen as a threat to jobs, wages, and economic security in higher-income countries, having become synonymous with the dirty work of globalization. Even though the majority of corporations make some use of offshore outsourcing, fearful of negative publicity most now choose to manage these activities in a discreet manner. Partly as a result, the global sourcing business, reckoned to be worth more than $120 billion, largely operates under the radar, its ocean-spanning activities in low-cost labour arbitrage being poorly documented and poorly understood. Offshore is the first sustained investigation of the workings of the global sourcing industry, its business practices, its market dynamics, its technologies, and its politics. The book traces the complex transformation of the worlds of global sourcing, from its origins in the new international division of labour in the 1970s, through the rapid growth of back-office economies in India and the Philippines since the 1990s, to the development of "nearshore" markets in Latin America and Eastern Europe. Recently, this evolving process of geographical and organizational restructuring has included experiments in "backshoring" within low-cost, ex-urban locations in the United States and a wave of software-enabled automation, which threatens to remove labour from many back offices altogether. In these and other ways, the offshore revolution continues.