India'sComparativeAdvantage
Having read or heard about American companies outsourcing jobs to
India, we may think that outsourcing alone is responsible for
India's incredible economic growth, but Indian companies are
responsible for more than we realize. Review the three segments of
the case and write your responses as instructed.
Nations and businesses engage in international trade to obtain raw
materials and goods that are otherwise unavailable to them or
available elsewhere at a lower price than that at which they
themselves can produce. A nation, or individuals and organizations
from a nation, sells surplus materials and goods to acquire funds
to buy goods, services, and ideas its people need. Which goods and
services a nation sells depends on what resources it has
available.
Read the case below and answer the questions that
follow.
Part I: India, with a population of 1.2 billion, has experienced
incredible economic growth in the past 15 years and is currently
the second fastest growing country in the world (China is first).
For the past 15 years, the country has shown an average annual
growth rate of 6 percent, and analysts believe the country's annual
growth rate may increase over the next 10 years. This growth is
important to the country's population, which now exists in stark
contrast between affluent cities and impoverished areas – on
average, an Indian telephone operator earns less than $ 1 an hour,
a medical transcriptionist about $ 2 an hour, and an accountant $
10 an hour, and around 44 percent of the population live on under $
1 a day.
Part II: India's road to success has been and will be extremely
different from the organized route China has taken to expand its
economy. China's all-powerful government is responsible for the
country's growth, while India has a large number of entrepreneurs
who are determined and willing to do what it takes to make money.
Indian companies are growing at remarkable annual rates of 15 to 25
percent. However, Indian consumers are also contributing to this
growth. Personal consumption accounts for 67 percent of India's
gross domestic product, only 3 percent behind the United States,
which has the highest personal consumption rate.
Part III: American companies have moved their operations to India
to take advantage of inexpensive labor, but India boasts a growing
number of its own successful blue-chip companies, such as Infosys,
Tata Consultancy, and Wipro. Infosys, for example, designs and
maintains software for almost 300 Fortune 500 companies. India's
manufacturing sector has also become a global force. Once sluggish
and inefficient, the manufacturing industry has benefited from
recent economic reforms as well as a plentiful supply of
engineering talent and inexpensive labor. Above all, what appears
to be driving India's growth is an enthusiasm to succeed. This
enthusiasm may be attributed to India's emergence as an independent
society ready for change – and what a change!
Because the cost of labor is low, many countries have ____ manufacturing and call center functions to India.
Multiple Choice
Outsourced
Exported
Imported
Traded
Franchised
Summary of 3 cases :-
1. India's growth averaged around 6% for past 15 years. No doubt the most important element in it comes due to outsourcing activities that various Indian companies do . Labor rate is very low in India compared to many developed nation's like US, UK. One one hand it contributed to the development and fast economic growth of the country on the other hand it leads to exploitation of personnel and labor of the company as they are forced to work for many hours and that too at a very low rate. But at the end they satisfy them by saying that something is better than nothing.
2 . India has a large number of entrepreneurs engaged in different different industries and goverenment of the country is always in a look to divest it's shares from the government company to private entrepreneur. Due to the presence of so many entrepreneurs consumption rateisalso very high in India .
Answer to the fill in the blank :-
Because the cost of labor is low many countries have outsourced manufacturing and call center function to India .
India'sComparativeAdvantage Having read or heard about American companies outsourcing jobs to India, we may think...
India'sComparativeAdvantage Having read or heard about American companies outsourcing jobs to India, we may think that outsourcing alone is responsible for India's incredible economic growth, but Indian companies are responsible for more than we realize. Review the three segments of the case and write your responses as instructed. Nations and businesses engage in international trade to obtain raw materials and goods that are otherwise unavailable to them or available elsewhere at a lower price than that at which...
India'sComparativeAdvantage Having read or heard about American companies outsourcing jobs to India, we may think that outsourcing alone is responsible for India's incredible economic growth, but Indian companies are responsible for more than we realize. Review the three segments of the case and write your responses as instructed. Nations and businesses engage in international trade to obtain raw materials and goods that are otherwise unavailable to them or available elsewhere at a lower price than that at which...
1 India'sComparativeAdvantage Having read or heard about American companies outsourcing jobs to India, we may think that outsourcing alone is responsible for India's incredible economic growth, but Indian companies are responsible for more than we realize. Review the three segments of the case and write your responses as instructed. Nations and businesses engage in international trade to obtain raw materials and goods that are otherwise unavailable to them or available elsewhere at a lower price than that at...
Required information India'sComparativeAdvantage Having read or heard about American companies outsourcing jobs to India, we may think that outsourcing alone is responsible for India's incredible economic growth, but Indian companies are responsible for more than we realize. Review the three segments of the case and write your responses as instructed. Nations and businesses engage in international trade to obtain raw materials and goods that are otherwise unavailable to them or available elsewhere at a lower price than that...
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