7/24/2019 MBA SEMESTER 1 ASSIGNMENT ME.doc http://slidepdf.com/reader/full/mba-semester-1-assignment-medoc 1/62 F-2,Block, Amity Campus Sec-125, Nodia (UP) Idia 2!1"!" ASSI#N$%N&S P'#'A$ S%$%S&%'-I Su*+ect Name $aaeial %coomics Study CUN&'. Suda Pemaet %ollmet Num*e (P%N) 'oll Num*e IB!1/52!1!-2!12!05 Studet Name S$AIA &A$BA %$AI INS&'UC&INS a) Studets ae e3uied to su*mit all t4ee assimet sets ASSI#N$%N& 6%&AIS $A'S Assimet A Fi7e Su*+ecti7e 8uestios 1! Assimet B &4ee Su*+ecti7e 8uestios 9 Case Study 1! Assimet C 0! *+ecti7e 8uestios 1! *) &otal :ei4tae i7e to t4ese assimets is "!; ' "! $aks c) All assimets ae to *e completed as typed i :od<pd= d) All 3uestios ae e3uied to *e attempted e) All t4e t4ee assimets ae to *e completed *y due dates (speci=ied =om time to time) ad eed to *e su*mitted =o e7aluatio *y Amity Ui7esity =) &4e e7aluated assimet maks :ill *e made a7aila*le :it4i si> :eeks &4eea=te, t4ese :ill *e destoyed at t4e ed o= eac4 semeste ) &4e studets 4a7e to attac4ed a sca siatue i t4e =om Siatue 6ate ???15Au2!11?????????????????????????????? ( ) &ick mak i =ot o= t4e assimets su*mitted
This document is posted to help you gain knowledge. Please leave a comment to let me know what you think about it! Share it to your friends and learn new things together.
a) Studets ae e3uied to su*mit all t4ee assimet sets
ASSI#N$%N& 6%&AIS $A'SAssimet A Fi7e Su*+ecti7e 8uestios 1!Assimet B &4ee Su*+ecti7e 8uestios 9 Case Study 1!Assimet C 0! *+ecti7e 8uestios 1!
*) &otal :ei4tae i7e to t4ese assimets is "!; ' "! $aksc) All assimets ae to *e completed as typed i :od<pd=d) All 3uestios ae e3uied to *e attemptede) All t4e t4ee assimets ae to *e completed *y due dates (speci=ied
=om time to time) ad eed to *e su*mitted =o e7aluatio *y AmityUi7esity
=) &4e e7aluated assimet maks :ill *e made a7aila*le :it4i si>:eeks &4eea=te, t4ese :ill *e destoyed at t4e ed o= eac4 semeste
) &4e studets 4a7e to attac4ed a sca siatue i t4e =om
indicator is found out the changes in factors may render the indicator
redundant over time. Thirdly the time lag between the indicator and forecast
could be so small that it could become useless.
Coicidet idicatos These are indicators which move in step or
coincide with movements in general economic activity or business cycle.
ai idicato These are indicators which lag the movements in
economic activity or business cycle.
'eessio met4odIt is one of the statistical tools to fore cast demand. In this estimating
e"uations are established and tests can be carried out to observe any
statistically significant. It involves following steps
Identification of variables which influence the demand for the good
whose function is under estimation.
!ollection of historical data on all relevant variables.
!hoosing an appropriate form of the function.
56stimation of the function
Regression method is popular because it is prescriptive as well as
descriptive. $lso it is not as sub=ective or ob=ective as other methods.
<owever if the variables chosen are wrong then the forecast will also be
wrong. $ typical demand e"uation could be )7og d + -C.E 1 C.FG log y -C. log H 1 .H log v 1 H.G log g 1 C. log e
@ + ?ational income
8 + groundnut oil price
2 + 2anaspati price
> + ghee price
6 + egg, fish and meat price
The above e"uation is a demand forecast e"uation for groundnut oil Simultaeous e3uatio met4od (%coometic $odels)6conometric forecasting incorporates or utilies the best features of other
forecasting techni"ues such as trend and seasonal variation, smoothing
techni"ues and leading indicators. 6conometric forecasting models range
from single e"uation models of the demand that the firm faces for tits
product to large multiple e"uation models describing hundreds of sectors
Uses ad s4otcomis o= iput output =oecastiInput output analysis and forecasting has many uses and applications. It is
used by the firm to forecast the raw material, labor and capital re"uirement
needed to meet the forecasted change in the demand for their product. The
shortcomings are that the direct and total coefficients are assumed to befi#ed and thus do not allow input substitution. Input output tables are usually
available with a time lag of many years and while the input output
coefficients do not change very rapidly they can become very biased.
'easos =o =luctuatios i time seies data!hanges occur in secular trend i.e. long run increase or decrease in data
series.
Cyclical =luctuatiosThere are the ma=or e#pansions and contractions in most economic time
series data that seem to re-occur every several years.. $ typical cycle could
last CK-H years.
Seasoal 7aiatioThis refers to regularly recurring fluctuations in economic activity during
each year e.g. a typical factor could be weather and social customs.
Ieula ad adom 7aiatioThis is the variations in the data series resulting from uni"ue events like
wars, natural disasters or strikes. The total variation in the time series is the
result of all the above four factors operating together. They are usually
e#amined separately by "ualitative techni"ues.
Smoot4i &ec4i3uesThis techni"ue predicts feature value of time series on the basis of some
average of its past value only. This techni"ue is useful when the time series
e#hibits little trend or seasonal variation but a great deal of random
variation. There are two smoothing techni"ues.
$o7i a7eae smoot4i tec4i3ueThe simplest smoothing techni"ue is the moving average. <ere the
forecasted value of a time series in a given period is e"ual to the average
value of the time series in a number of previous periods. This method is
more useful the more erratic or random is the time-series data.
%>poetial smoot4i tec4i3ueThis techni"ue is used more fre"uently than simple averages in forecasting.
This method is a refined version of moving average method. The
disadvantage of moving average method is that it gives e"ual weightage to
the data related to different periods %i.e. months& in the past. $ccording to
e#ponential smoothing method more recent the data the more relevant it is
<ow shall it deal with its employeesManagers make these decisions, and in order to obtain a clear understanding
of the decision
making process, a classification system is useful. Three such systems are
available4 each based on different types of decisions.
8rganiational and personal decisions,
;asic and routine decisions
'rogrammed and non-programmed decisions.
8rganiational decisions are those e#ecutives make in their official role as
managers. The adoption of strategies, the setting of ob=ectives and the
approval of plans constitute only a few of these. *uch decisions are often
delegated to others, re"uiring the support of many people throughout the
organiational if they are to be properly implemented.
'ersonal decisions are related to the managers as an individual, not as a
member of the organiations. *uch decisions are not delegated to others
because their implementation does not re"uire the support of organiational personnel. Deciding to retire, taking a =ob offer from a competitive firm, or
slipping out and spending the afternoon on the golf course are all personal
decisions.
$ second approach is to classify decisions into basic and routine categories.
;asic decisions can be viewed a much more important than routine ones.
They involve long-range commitments, large e#penditures of funds, and
such a degree of importance that a serious mistake might well =eopardie the
well being of the company. *election of a product line, the choice of a new
plant site, or a decision to integrate vertically by purchasing sources of raw
materials to complement the current production facilities are all basic
It is useful to e#amine some of the specific techni"ue that has proved
valuable in the decision making process, two of which are marginal analysis
and financial analysis.
$aial AalysisThe Amarginal productA of a productive factor is the e#tra product or output
added by one e#tra unit of that factor, while other factors are being held
constant. 7aborOs marginal product is the e#tra output you get when you addone unit of 7abor holding all other inputs constant. *imilarly, land:s marginal
-product is the change in total product resulting from one additional unit of
land with all other inputs held constant. The manager can use the concept to
answer "uestions such as how much more output will result if one more
worker is hiredM The answer often called marginal physical product,
provides a basis for determining whether or not one new man will bring
about profitable additional output.
Fiacial AalysisThe firms are supposed to safeguard their interest and avert the possibilities
of risk or try to minimie it. 0or this a firm needs to analye the assets as
well as liabilities, efficiency of capital investment, choice of pro=ect and
various vital ratios. The cost benefit analysis ensures the firms to take
prudent financial decision.
#oup 6ecisio &ec4i3uesThere are several group decision techni"ues)
Baistomi;rainstorming is a techni"ue in which group members spontaneously
suggest keys to solve a problem. Its primary purpose is to generate a
multitude of creative alternatives, regardless of the likelihood of their beingimplemented.
Nomial #oup &ec4i3ueThe ?ominal >roup Techni"ue involves, the use of highly structured
meeting agenda and restricts discussion or interpersonal communication
during the decision making process. 9hile the group members are all
physically present, they are re"uired to operate independently.
6elp4i #oup &ec4i3ueThe Delphi group Techni"ue employs a written survey to gather e#pert
opinions from a number of people without holding a group meeting. Unlike
in brainstorming and nominal groups, Delphi group participants never meet
fact to face4 in fact, they may be located in different cities and never see
The first condition is caused purely by profit ma#imiation, and itOs true in
both the *R and the 7R. The second condition, however, is caused by entry
and e#it in the 7R. It wonOt necessarily be true in the *R.
These two conditions have important efficiency implications. arginal-cost
pricing %pV+ !& means that consumers who buy the product face the true
opportunity cost of their choices. They will only buy the good if the value to
them is greater than the price, which represents the value of the resourcesthat went into making the product. inimum average cost pricing %pV +
minimum $T!& means that the product is being made at the lowest average
cost possible, so that no resources are being wasted in its production.
The conclusion that firms make ero profit in the 7R may seem odd, given
the profits that many firms earn in reality. 9hat could e#plain the difference
between theory and realityM %C& Reality may differ from the perfectly
competitive model, and to that e#tent economic profits can be made. ;ut
also, %& the profits we generally hear about are accounting profits, not
economic profits. To find out whether these NprofitableB firms are really
making economic profits, weOd need more information about their implicit
costs.
0inally, %J& we may be observing short-run profits, not long-run profits.
Pe=ect Competitio ad Plat SieIt turns out that the perfectly competitive firm produces not =ust at the
minimum of its *R$T!, but also its 7R$T!. 9hyM ;ecause any '! firm
not at its minimum 7R$T! will, in the 7R, change its input combination to
take advantage of lower average costs. If firms are able to make positive
profits by moving outward on the 7R$T! curve, those profits will attract
entrants into the industry in the usual fashion. *o by the same arguments as before, profits will eventually dissipate to ero. The price must be at the
bottom of the 7R$T!, not =ust the *R$T!.
Pe=ect Competitio ad t4e ' Supply Cu7e$s we have seen, changes in demand in a '! market create profits and
losses for firms. In the *R, this has no effect on the supply curve4 but in the
7R, firms enter for profits and leave to escape losses, leading to supply
curve shifts. 9e want to use this information to derive a 7R supply curve. $
7R supply curve, =ust like a *R supply curve, shows the total "uantity that
will be supplied in a market at different prices4 but unlike the *R supply
curve, it shows the "uantity supplied after all long-term changes, including
entry and e#it of firms, have been taken into account.
In the basic supply-and-demand framework, notice that we can use demand
curves and e"uilibrium points to Ntrace outB the supply curve. If you look at
This is the most common method used for pricing. Under this method, the
price is set to cover the costs %materials, labour and overhead& and a
predetermined percentage for profit. The percentage differs from industry to
industry. This may reflect differences in competitive intensity, differences in
cost base, differences in rate of turnover and risk.
8rdinarily the profits are kept at a margin sensitive to the market conditions.
ark-ups may be determined by trade associations either by the means ofadvisory price-list or by actual list of mark ups distributed to members.
Usually profit margins under price control are so set as to make it possible
for even the least efficient firms to survive.
This method ignores the demands -there is no necessary relationship
between the costs and what the people pay for the product. $lso it fails to
reflect the forces of the competition ade"uately.
6#ample) $ll the stationery products are priced in this way.
CAS% S&U6.
Itoductio
$ic4ael ol=so, a compute poamme 4ad a decet +o* :it4 t4e=iacial po:e4ouse Bea, Steas G Co No:, 4e e=u*is4escomputes at t4e *asemet i 4is 4ouse ad sells it t4ou4 e-*ay Eeplas to +oi as a sc4ool teac4e $ic4ael lost 4is +o* i 2!!" Ee :as
told t4at 4is +o* is *ei outsouced to Idia Paul Sc4:at, amai=ame poamme, :4o :as eai H !,!!! a yea :as told t4at4is se7ices :ee o loe e3uied Ee suspects t4at 4is +o* 4as *eeoutsouced to Idia
&4ee is o:i disset amo t4e Ameicas aaist t4e iceasi
pactice o= outsouci It 4as *ecome a electoal issue i t4e comipesidetial electios i t4e US &4e 6emocatic cadidate, Jo4 ey4as made it a emoti7e issue, despite ecoomists tyi to potay t4epositi7e aspects o= outsouci
+o*lessess i t4e US 4a7e added =uel to t4e =ie Eo:e7e, mayaalysts =eel t4at +o*lessess i t4e US is cyclical i atue esulti=om t4e ecessio o= 2!!1 ad 4ece, a eco7ey :ill ceate +o*
oppotuities
$oeo7e, accodi to t4e US-Idia Busiess Coucil, t4e iceasiuemploymet is also due to copoate estuctui ad +ust a 3uateo= t4e +o* loss is due to outsouci Sice, t4e *eii o= 2!!1, t4eeal +o* loss i US is estimated to *e 2" millio I compaiso, t4eactual +o* loss due to outsouci is estimated to *e oly 2!!,!!! &4us,it ca *e said t4at t4ee ae 7aious ot4e easos =o +o*lessess i t4eUS &4e outcy aaist outsouci seems to *e di7e moe *y politics
at4e t4a ecoomicsutsouci =oms a small popotio o= t4e +o*s t4at ae eulalyc4ued i t4e US ecoomy a a7eae, 20 millio +o*s ae c4uedi t4e US e7ey mot4 I t4e pocess, esouces ae allocated, =o moepoducti7e puposes &o come out o= t4e ecessio ad aise t4estadads o= li7i, 4i4e poducti7ity seems to *e t4e oly solutio&4e de*ate o outsouci at4eed mometum oly i t4e ecet pastA study *y Foeste, a eseac4 oup, i t4e yea 2!!2, *ou4t t4eissue ito limeli4t &4e epot claims t4at *y 2!15, "" millio :4ite-
colla +o*s i t4e US :ould *e tas=eed to couties like Idia
&4e %coomics o= utsouci
But is outsouci so *ad =o t4e US ecoomy #eoy $aki:,po=esso o= ecoomics at t4e Ea7ad Ui7esity ad 4ead o= PesidetBus4Ks Coucil o= %coomic Ad7ises, ecetly told pesspesos t4at
outsouci o= +o*s is i *ette iteest o= US Accodi to 4im,outsouci lo:es t4e cost =o cosumes, maki t4e copoatiosmoe e==iciet &4ee :ee a seies o= aticles i &4e %coomist,4i4li4ti t4e ad7ataes o= outsouci
&4ee ae may i=luetial oups i t4e US :4o ae petu*ed *y t4e
ecet outcy aaist outsouci Says C4ales % $oiso, Pesidet,%ast est Cete, a US *ased t4ik tak, L==-s4oi is ot aecoomic po*lem, *ut a ecoomic oppotuityL $ay aalysts i t4eUS =eel t4at ati o==-s4oi *ills i t4e US :ould po7e to *eie==ecti7e Simila 7ie:s :ee ec4oed *y $ic4ael & Clak o= US-Idia*usiess coucil Ee says t4at, LJo*s lost to o==-s4oi :ee less t4a a3uate o= all +o*s lost i t4e US i 2!!2 &4e est :ee lost due tocopoate estuctui &4e cuet de*ate i t4e US o o==-s4oi isi=omed *y lack o= =actsL
I a aticle, L4y .ou Jo* IsKt $o7i to Baalore"i t4e Ne:.ok &imes, Jadis4 B4a:ati, a seio =ello: at t4e Coucil o Foei'elatios ad po=esso at Colum*ia Ui7esity :ites t4at t4e paicad =uo o7e outsouci is completely u:aated Ee =ut4e sayst4at o +o*s ae *ei take a:ay =om Ameica Ee says t4at t4e a==ecto= c4aes i tec4oloy is *ei =elt i t4e la*o itesi7e idustiesAccodi to 4im, t4e loss o= +o*s i t4e US is due to tec4oloicalc4aes
Po=esso B4a:ati is also citical a*out politicii t4e :4ole issue Eesays t4at outsouci :ill stet4e t4e competiti7eess o= t4e UScompaies Fims ioi t4e c4eape supplies :ould lose outPo=esso B4a:ati =ut4e says t4at outsouci se7ice +o*s is ot4idi==eet =om impoti o= la*o-itesi7e te>tiles ad ot4e oodsAccodi to 4im, all empiical studies i t4e US o7e t4e last t:odecades suest t4at :ae staatio i t4e mau=actui idusty ismoe due to automatio o= t4e pocesses, ot t4e c4eape impots &4esame is applica*le to se7ice idusty as :ell
Jae ide o= AccetueKs Istitute =o Stateic C4ae says t4atcompaies outsouci t4e taditioal *ack-o==ice :ok 4a7e moecotol ad disciplie o7e t4ei opeatios $oeo7e, employees o= t4ecompay ca cocetate o =ami stateies Fut4e, outsoucialso esults i eate e==iciecy ad lo:ei costs &4is allo:scompaies to o==e *ette se7ices to customes A study doe *y$cisey #lo*al Istitute e7eals t4at =o e7ey dolla o= :ok
outsouced *y t4e US, it ets *ack H110 f as icome, ad t4e coutiesto :4ic4 t4e :ok is *ei outsouced ais "5 cets &4is s4o:s t4atoutsouci is a :i-:i situatio o *ot4 t4e couties
Bee=its =o US Bee=its =o Idia
Sa7is to US i7estos o customes !5 a*o !1
Impots o= US oods ad se7ices *ypo7ides i Idia
!!5Po=its etaied i
Idia!1
&as=e o= po=its *y US *ased
po7ides i Idia *ack to US
!!0 Supplies !!M
Net diect *ee=it etaied i US !/Cetal
o7emet ta>es!!"
Oalue =o US la*o eemployed!05-!0
State o7emetta>es !!1
Potetial et *ee=it =o US112-110
Net *ee=it to Idia !""
Souce $ckisey #lo*al Istitute
&4ee is a de=iite cost ad7atae i o==-s4oi :ok to Idia &4esead7ataes ae a esult o= lo:e :aes i t4e de7elopi couties alo:it4 t4e de7elopmet o= telecommuicatios i t4ese couties A epotpu*lis4ed *y ESBC, :4ic4 4as o==-s4oed moe t4a 0,!!! +o*s toIdia, says t4at t4e telep4oe costs =om Idia to Ameica ad Bitai4as deceased *y almost !;, sice Jauay 2!!1 &4e :ae di==eece*et:ee t4ese couties is also a =acto t4at =oces t4e compaies to
outsouce t4ei *usiess pocesses to Idia A study doe *yNASSC$, says t4at t4e a7eae salay o= a I& po=essioal i U isHM/,!!!, i US it is H5,!!!, :4eeas i Idia it is +ust H2/,!!! &4e :aedi==eece *et:ee t4e lo: ed call cete +o*s o= *ot4 t4e couties isalso 7ey :ide A a7eae call cete employee i U eas H2!,!!! ot4e a7eae 4eeas, a call cete po=essioal i Idia *aely maaes
to ea oe tet4 o= t4e eais o= t4ei Bitis4 coutepats
==s4oi allo:s compaies to :ok oud t4e clock It i7es ampletime to t4e compaies to t4ik a*out t4ei I& po*lems 'ecetly,Ameica %>pess paid H5,!!! to a oup o= so=t:ae poammes iIdia, to de7elop a packae =o t4em &4e same :ould 4a7e cost t4emse7eal millio dollas i US
&4e *ee=its o= outsouci o muc4 *eyod t4e cost ad7atae Aaticle i $ckisey 3uately suests t4at t4e compaies eed to look *eyod cost sa7is &4e aticle says t4at LCompaies ae meelyeplicati :4at t4ey do at 4ome, :4ee la*o is e>pesi7e ad capital iselati7ely c4eap, i couties i :4ic4 t4e e7ese is tueL
Ala #eespa, US Fedeal 'ese7e C4aima, is a stauc4 suppoteo= outsouci Ee is o= t4e opiio t4at ay mo7e to cu* outsoucio= :ok to couties like Idia ad C4ia, mi4t i7e +ust a tempoayelie= 'eacti to t4e poposed leislatios i t4e US *aioutsouci, #eespa said, LA e: oud o= potectioist steps is
*ei poposed aaist outsouci &4ese alleed cues :ill makemattes :oseL #eespa =eels t4at ay e==ot to potect US +o*st4ou4 leislatio :ould *ack=ie
Not all compaies 4a7e take =ull ad7atae o= outsouci Accodito Eais $ille, pesidet o= t4e I=omatio &ec4oloy Associatio o= Ameica (I&AA), a lo**y oup, so =a oly "-0 ; o= all Ameicacompaies outsouce t4ei pocesses &4e emaii still ests :it4Ameica =ims A epot pu*lis4ed *y Foeste, i 6ecem*e 2!!",says t4at /!; o= t4e Fotue 1!!! compaies 4a7e a elii*le o eail pesece i o==-s4oi 'epot also suests t4at 0!; o= t4e :ok o= t4ese compaies could *e outsouced &4us, t4e potetial =o o:t4 ioutsouci is still immese
Ad7acemet i t4e tec4oloy ca i7e a =ut4e pus4 to t4e o==-s4oi acti7ity &4e i=le>i*le ac4itectue o= t4e cuet tec4oloies
is acti as a 4idace i o==-s4oi, says Simo Eeap o= Bai G Co, acosultacy =im &4e ad7acemet i so=t:ae ad 4ad:ae :ouldea*le t4e compaies to o==-s4oe e7e small acti7ities Fims :ould *ea*le to o==-s4oe t4e acti7ities o= t4e etie depatmet, say *illi o= customes
Eo:e7e, ot e7eyoe seems to aee :it4 t4e suppotes o= outsouci Step4e 'oac4, t4e c4ie= ecoomist at $oa Staley,says t4at it is oly t4e :ae di==eece t4at is ecouai compaies tooutsouce :ok to Idia o ay ot4e de7elopi couty Ee =ut4esays t4at +o*lessess is taki a:ay t4e c4am o= eco7ey i t4e US
$ay aalysts also =eel t4at compaies s4ould take some cocete stepsto miimie t4e a==ects o= outsouci Compaies s4ould make t4epocess o= +o* tas=es to o==s4oe destiatios moe smoot4 Bitis4&elecom e>4i*ited a pocess o= outsouci t4at ca *e used as a model*y ot4e compaies
I 2!!", :4e B& aouced t4at it is plai to ope t:o call cetesi Idia, :it4 a capacity o= 22!! people, it :as citicied =om allcoes It :as said t4at B& :as ot acti i a socially esposi*lemae 'ealii t4e a7ity o= t4e situatio, B& appoac4edSustaia*ility, a iteatioal cosultacy, specialii i *usiessstatey ad sustaia*le de7elopmet &4e cosultacy =im :as askedto =id :4et4e o ot outsouci ad copoate social esposi*ility
(CS') co-e>ist
Sustaia*ility oted t4at t4e immediate impact o= outsouci :ould *e +o* loss =o t4e employees, ad t4e esulti a==ect o t4e society &4ecosultacy =im :as o= t4e opiio t4at *e=oe outsouci, compaiess4ould addess t4e eati7e impact o= outsouci I ode to c4eck t4eeati7e impact o= o==-s4oi, =ims s4ould cosult :it4 employees,tade uios, commuities ad ot4e key stake4oldes %mployeess4ould *e i7ol7ed i t4e pocess o= ay suc4 decisio makiSustaia*ility also suested t4at =ims s4ould *e taspaet ad maket4e employees ko: t4e se7ices t4at ae *ei outsouced
Fims s4ould also make a attempt to edeploy t4e employees i someot4e depatmets &4is :ould miimie layo==s A attempt s4ould *emade to etai t4e edudat :okes A pat o= t4e sa7is =om o==-s4oi s4ould *e i7ested =o t4is pupose As pe t4e suestio made
US :as oe o= t4e pime suppotes o= =ee tade US :as least *ot4eed
a*out t4e coces o= may ot4e de7elopi couties :4e t4ey aisedt4ei 7oices aaist +o* losses as a esult o= t4e c4eap e>pots But, t4isaessi7eess seems to 4a7e mello:ed do: i ecet days It al:ayspopaated t4at ie==iciet idusties s4ould *e closed e o= t4epimay tasks o= t4e US &ade 'epesetati7eKs o==ice :as to keep ac4eck o t4e :old makets It assesses t4e makets :4ic4 ae opeiup ad :4ic4 ae etti closed as a esult o= 4i4 tai==s ad ot4e3uatitati7e estictios No:, :it4 t4e o:i e==iciecy o= de7elopicouties i t4e se7ice sectos, may +o*s i t4ese sectos ae *eitas=eed to de7elopi couties (o= :4ic4 a ma+o c4uk is comi
to Idia) US is :oied a*out t4e iceasi +o*lessess *ut t4at seemspaado>ical It 4ails lo*aliatio *ut :4e it comes to t4e de7elopicouties tyi to eap t4e *ee=its o= lo*aliatio, it aises all sots o= issues
'ecetly t4e US o7emet 4as ti4teed t4e 7isa oms &4e um*eo= E-1B 7isas issued to Idia so=t:ae poammes =ell to /5,!!! =om1,M5,!!! i 2!!" Aalysts =eel t4at t4is :ould icease outsouci o=
+o*s =ut4e, paticulaly to Idia Accodi to Cai Baett, t4e c4ie=
e>ecuti7e o= Itel, ati o= =e:e 7isas :ould =oce t4e compaies tos4i=t t4ei +o*s to couties like Idia, :4ee t4ee is o deat4 o= 3uali=ied eiees
6espite o *a =om t4e =edeal aut4oities o outsouci, may States4a7e iitiated t4e pocess o= putti estictios o outsoucio7emet :ok to =oei couties &4e la:makes i t4e state o= Ne: Jesey 4a7e poposed a *ill t4at stops =ims to outsouce ayo7emet elated :ok to a =oei couty Succum*i to t4e pu*licpessue, t4e o7emet :as =oced to *i *ack a 4elplie =o
:el=ae ecipiets t4at :as *ei outsouced to Idia Similaly, t4estate o= Idiaa :it4de: a H 15 millio cotact =om a Ameicasu*sidiay o= a Idia I& =im Commeti o t4e mo7e, t4e Idiaao7eo said t4at cotact :as ot i tue :it4 IdiaaKs 7isio o= po7idi *ette ad moe +o* oppotuities to local compaies ad:okes Eo:e7e, aalysts =eel t4at t4ese decisios 4a7e *ee
i=lueced *y political pessue i t4e *ackdop o= comi pesidetialelectios i t4e US
&4e Idia 'espose
&4e Idia BP idusty is ot taki t4e outcy aaist outsouci it4e US seiously Idia BP =ims ae o loe +ust call cetes &4eiacti7ities o: co7e maketi ad ko:lede *ased se7ices &4esecompaies ae o: aspii to *ecome stateic pates =o UScompaies &4ee is a sudde sput i t4e um*e o= 7etue capitalists:illi to i7est i di==eet aeas &4ou4, some so=t:ae compaiescaKt 4ide t4ei coce o7e t4e leislatios *ai o7emetelated o==-s4oi i t4e lo-u *ut, =o o: t4ey ae clea t4at, t4eseleislatue :ill 4a7e elii*le e==ect o t4e cuet cotacts :it4 t4e
pi7ate compaies 'eacti to t4e :4ole issue, Naayaa $ut4y,C4aima ad C4ie= $eto o= I=osys said t4at t4ee is o issue to:oy a*out Ee temed t4e outcy as omal Ee suested t4at at4et4a etti :oied ad aitated, Idias s4ould put =o:ad t4eipoit o= 7ie: ad e>plai t4e ad7ataes o= o==-s4oi Ee said t4at t4epeset ucetai ecoomic situatio is esposi*le =o t4e coce o7et4e +o* losses i t4e US
$ay aalysts =eel t4at t4e oppositio to outsouci may ot ed :it4
t4e US pesidetial electios it4 may o= t4e Ameica States, comiout :it4 leislatios *ai o7emet cotacts to ot4e couties,t4e issue o= o==-s4oi is oi to *e ali7e Coditios =o o==-s4oimay *ecome =a7oa*le :it4 t4e impo7emet i t4e pe=omace o= t4eUS ecoomy
8uestio =o discussio
8ue 1 #i7e you opiio o outsouci ad its impact o t4e pospectso= o:t4
o= t4e ecoomy o= 4ome Natio ad 4ost atio
#uidelies =o t4e as:e 6iscuss t4e issue i t4e pespecti7e o=oppotuity ad t4eats =aced *y de7elopi ad de7eloped atios