Question

Outsourcing is a source of employment in the host country but also criticised in home country. Explain.

Solution

In the course of contracting out manufacturing, marketing, research and development or it based services, what is ultimately contracted out is ‘employment’ or jobs. This may cause resentment back in the home country (i.e., the country from which the job is being sourced out) particularly if the home country is suffering from the problem of unemployment.

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