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Do developing nations benefit from outsourcing?

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Do developing nations benefit when manufacturers outsource due low labor costs?

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Solution Summary

This solution discusses the benefits to developing countries from outsourcing in 354 words with one example.

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In my opinion, the manufacturing of goods in countries with low labor cost has a much more positive impact on the developing nation, apart from benefitting the developed countries. First of all, the developing nations gets strong foreign direct investment by large corporations based in developed nations, thereby boosting the manufacturing capacity of the country and creating jobs in the developing nation.

Secondly, the developing nations gets access to best manufacturing practices that such large companies bring to their facilities in developing nations. Further, the ...

Solution provided by:
Sandeep Bardia, MBA
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  • BCom, SGTB Khalsa College, University of Delhi
  • MBA, Rochester Institute of Technology
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