Outsourcing Vs. Foreign Direct Investment (FDI)
Given that outsourcing is a viable alternative to Foreign Direct Investment (FDI), what issues should be considered before a firm decides between the two? Provide advantages or disadvantages for each. Then, for a business of your choice, explain which country may be appropriate for foreign direct investment and which country might be better for outsourcing. Explain your reasons. (Approximate length 200 – 250 words).
Answer preview
The management should consider how much control they want to have while outsourcing. The management should also determine whether it is cheaper to outsource or perform the service themselves. In considering Foreign Direct Investment, the management should determine the issues of ownership and internalization…words 429