Delivered-To: [EMAIL PROTECTED] Date: Wed, 03 Mar 2004 17:37:15 -0800 From: Jamus Jerome Lim <[EMAIL PROTECTED]> Subject: RE: [IP] more on ] Now, a course on outsourcing: MIT shows the way] To: [EMAIL PROTECTED], 'Ip' <[EMAIL PROTECTED]>
Hi Dave,
> PLEASE! Stop confusing "outsourcing"-- which has been a common and > generally-accepted/acceptable business practice, probably since the > beginning of "business" ... with "OFFSHORING"!
For the record, the international trade literature generally defines "outsourcing" broadly in terms of: The use of intermediate factors of production from an external foreign country for a domestically-produced product. For example, the use of Taiwan-produced semiconductors and Singapore-produced HDDs in a Dell computer assembled in Austin, Texas. More narrowly, the definition involves the use of intermediate factors for the production for domestically-produced products that are *subsequently exported*.
The relocation of jobs from a domestic plant to a foreign plant
("offshoring")would be turn up in statistics as simply international
trade in goods (since the goods produced in a foreign country arrive
back at home in the form of imports). There is also a distinction
between a U.S. firm deciding to build a plant in a foreign country -
this is just foreign direct investment, or FDI.---- Jamus Jerome Lim [EMAIL PROTECTED] Web: http://www.internationaleconomics.net
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