Question

QUESTIONS Explain the relationship between international trade and the outsource/offshore business practice. Provide examples of your explanation

Answer 1

International trade is where there is exchange of service or goods across the Globe. There is a Global market and the Goods are traded worldwide.Such international trade are very beneficial to the customers as people get access to products across the Globe in their own Country. In addition, when there is a global trade it helps in increasing the potential of the Country in utilizing their resources and employing more labor and technology and hence paving a way to explore more opportunities. Under global trading, the price, supply and demand gets determined by global events. For example, if I walk into a supermarket in India and I find Durian fruit from Singapore then it is because of the global market. Traditional fruit of Singapore is available in a local supermarket in India due to Global trading.

Outsourcing on the other hand is more in specific to the IT Industry. It is typr of business practice where the IT industry tries to allocate its work to Third party so that it can either lower cost or bring more efficiency by allocating offshore or for better availability of technology services from third party. a company outsources services to a third party in a country other than the one in which the client company is based, typically to take advantage of lower labor costs.Foe example, a MNC in India which belongs to a US based companies works on a project for Hong Kong. This is a typical example of outsourcing.