Author Question: Which of the following forms of countertrade involves payments in a combination of cash and goods? ... (Read 96 times)

scienceeasy · **on:** Jul 7, 2018

Which of the following forms of countertrade involves payments in a combination of cash and goods?

A) barter
B) counterpurchase
C) compensation deals
D) buy-back agreements

Question 2

Discuss two ways in which labor can be a risk factor for a focal firm sourcing abroad: the potentially devastating effect of job losses in the home nation, and the risk of inadequate workers in the source nation.

Provide an example of each risk in your answer.
What will be an ideal response?

gasdhashg · **Reply #1 on:** Jul 7, 2018

Answer to Question 1

C

Answer to Question 2

Global sourcing can result in job losses in the home country. The number of jobs in the U.S. legal industry outsourced to foreign contractors now exceeds 25,000 per year. Some estimate that more than 400,000 jobs in the United States IT industry have moved offshore. Projections are that more than 3 million jobs will be outsourced from the United States by 2015. Critics say this amounts to exporting jobs.

It takes considerable time for laid-off workers to find new jobs. According to one estimate, as many as one-third of U.S. workers who have been laid off cannot find suitable employment within a year. Older workers in particular struggle to learn the skills needed for new positions. The rate of redeployment is likely to be even lower in Europe, where unemployment rates are already high, and in Japan, where employment practices are less flexible. In Germany, the percentage of workers who are not reemployed within a year of losing their jobs is as high as 60 percent. Under such circumstances, global sourcing may increase unemployment rates, reduce income levels, and harm the local community and national economy.

Global sourcing can also bring unexpected complications, including inadequate or low-skilled workers. Some foreign suppliers may be staffed by employees who lack appropriate knowledge about the tasks with which they are charged. Other suppliers suffer rapid turnover of skilled employees. Typical Indian operations in business processing may lose 20 percent or more of their workers each year, and good managers are often in short supply. In 2009, customer complaints about the quality of service led Delta Airlines to move its corporate call centers from India back to the United States.