Walmart Case

A Chinese Company Brings Hope to Former GM Workers in Ohio

1. Why is this significant?

In my opinion, the most important reason is that when Fuyao Auto Glass open, it will brings at least 800 jobs. This is quite significant. As the radio said, in the last decade the Dayton area alone lost 40,000 manufacturing jobs. Though the 800 new jobs won’t change this problem completely, it will become a trend of improvement. Besides, this place has been closed down for long time, the government hasn’t done anything with it. After the new facility opens, this place will be well used.

2. What is the difference between outsourcing and offshoring?

Offshoring means getting work done in a different country. Outsourcing means contracting work out to an external organization.(Feenstra & Hanson, 1999) Offshoring is often criticized for offering jobs to other countries. (Blinder, 2006)The risks of outsourcing include misaligned interests of clients and vendors, increased reliance on third parties. Benefits of offshoring are usually lower costs, better availability of skilled people.(Farrell, 2005) Usually companies outsource to take advantage of specialized skills, cost efficiencies and labor flexibility.(Segal, Moore, & Institute, 2002)

3. Provide one industry example for outsourcing.

Taiwan's Hon Hai Precision Industry, the main manufacturer of Apple products and a symbol of U.S. outsourcing. As estimated that Apple will order huge amount of products from Hon Hai Industry, including millions of iPhone, iPad and iPod Nano. When Hon Hai Industry finished those orders, they will deliver these Apple products to U.S.

4. Provide one industry example for offshoring.

SAMSUNG Starts Offshore Semiconductor Production in Xi An, China. SAMSUNG will invest more new offshore plants for flash memory chips when the market recovers. According to estimates of Xi'an Hi-tech Zone, one of the first phase investment will reach $ 7 billion, if successfully completed...