StudyCorgi Business & Economics

Offshoring, Risks, and Unemployment

The concept of offshoring is fairly simple, yet this phenomenon has affected a range of companies across the globe, making it possible to enhance the quality of end products and services (Blinder 113). However, when the idea of offshoring was relatively new to the environment of the global market, it was viewed as dubious because of the fear that it might entail massive negative consequences in the opportunities for job applicants worldwide. Nevertheless, despite its risks, offshoring cannot lead to unemployment since it implies reinforcing the process of knowledge sharing among staff members and, thus, encourages the professional growth thereof, making it possible for organizations to invest in the long-term development of their employees. According to Blinder, it was not offshoring but external economic and cultural factors and the lack of understanding of what defines the value of human resources that prevented an increase in employment rates, whereas offshoring was a means of enhancing employment and introducing options for improving employees’ skills.

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According to Blinder, the idea of offshoring was given a rather lukewarm reception because of the economic circumstances in which the identified decision was made. With the impact that the three consecutive Industrial Revolutions had on the practice of offshoring in the United States, the shares of the workforce within crucial jobs that defined the further development of the state economy declined significantly (Blinder 117). The identified change can be viewed as the primary factor behind the unwillingness to accept offshoring as a legitimate tool for managing human resources.

The impact of the Industrial Revolutions, though being admittedly large, did not grow to the point at which offshoring was wiped off the map of the American economy entirely. While the identified changes and the associated economic challenges made offshoring look rather unfavorable, they could not diminish its positive outcome to the point where they were no longer visible (Blinder 117). Nevertheless, the changes in manufacturing that the Second and the Third Industrial Revolutions entailed could be interpreted as the pivot point in people’s understanding and acceptance of offshoring as an efficient business practice.

The transfer to the personal service industry, which the specified change implies, is also fraught with several challenges. For example, alterations in how people with different levels of skills are perceived in the contemporary labor market need to be mentioned. As a result, a rapid expansion of the service industry is witnessed (Blinder 120).

I believe that offshoring has both advantages and problems, yet it needs to be incorporated into the realm of the contemporary economy to provide the said opportunities to all parties involved. As a concept, offshoring does not have an immediate negative effect on employment rates. Instead, these are the choices that companies make when provided with offshoring options that may affect the levels of employment in a particular market (Blinder 119). Therefore, it is necessary to focus on promoting the idea of knowledge sharing and cooperation as the platform on which successful HRM tools can be built in the context of the global market.

Although offshoring used to be viewed as a threat to employment levels, it was the absence of a detailed understanding of offshoring as a concept that prevented the introduction of the framework successfully into the global market. The phenomenon itself, on the contrary, allows for a massive increase in the levels of employees’ proficiency due to the chances of knowledge sharing and new experiences for staff members. Therefore, Blinder makes a very legitimate statement about the actual reasons for offshoring to fail in the economic setting of the Industrial Revolution. Therefore, offshoring should be regarded as a successful business practice that can be applied to contemporary economic realities to address HR issues, as well as boost the levels of economic growth within an organization.

Work Cited

Blinder, Alan S. “Offshoring: The Next Industrial Revolution?.” Foreign Affair, vol. 85, no. 3, 2006, pp. 113-128.

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StudyCorgi. (2020, December 26). Offshoring, Risks, and Unemployment. Retrieved from https://studycorgi.com/offshoring-risks-and-unemployment/

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"Offshoring, Risks, and Unemployment." StudyCorgi, 26 Dec. 2020, studycorgi.com/offshoring-risks-and-unemployment/.

1. StudyCorgi. "Offshoring, Risks, and Unemployment." December 26, 2020. https://studycorgi.com/offshoring-risks-and-unemployment/.


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StudyCorgi. "Offshoring, Risks, and Unemployment." December 26, 2020. https://studycorgi.com/offshoring-risks-and-unemployment/.

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StudyCorgi. 2020. "Offshoring, Risks, and Unemployment." December 26, 2020. https://studycorgi.com/offshoring-risks-and-unemployment/.

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StudyCorgi. (2020) 'Offshoring, Risks, and Unemployment'. 26 December.

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