1. The international economic theory based on the idea of comparative advantage related to the economic globalization and dependent on using the Business Process Outsourcing is reflected in the movie Outsourced (2006) directed by John Jeffcoat.
2. The factor which moves from the source country to the host one is the labor or human resources.
3. It is possible to identify the winners in losers in the movie Outsourced with references to the economic benefits received by different groups of people involved in the business. Thus, the winners are the leaders and employees of the company located in the host country because they can declare the rules for the business’s development and decide what countries to choose for outsourcing.
Furthermore, their income increases depending on the work of the employees in the source country. The losers in the movie are the Indian human resources because their gains depend on the decisions of the company’s leaders, and these employees are fired when the company’s leaders decide to choose China for outsourcing.
Referring to the welfare analysis models, it is important to note that only the leaders of the company in the United States can benefit from the income distribution because they receive the low-cost services of the appropriate quality to attract more consumers and increase their profits.
They are also the winners according to the factor of the efficiency between production and consumption because the Indian market provides opportunities not only for gaining human resources but also for gaining more potential customers.
Importing the cheap labor, the United States’ company focuses on creating the significant comparative advantage while selling services for higher prices. The idea to reward employees with the company’s products contributes to the potential expansion of the market.
According to the welfare analysis model, the Indian employees are the losers because they experience all the negative results of the unequal income distribution and inappropriate efficiency between production and consumption.
4. The host country orients to outsourcing because the company can minimize the costs spent for rewarding employees, and it can expand the market.
5. The opportunities faced by the company in the host country are the achievement of the stable position within the market with references to the customers’ needs and expectations. The threats are in high costs spent for human resources, material resources, and services, in the intensive competitiveness within the industry, and in the necessity decrease the product and service prices.
6. It is possible to predict the decrease in the host country’s interest in the source country because of the focus on finding new markets, and the economic decline connected with the high unemployment rate can be observed.
7. The positive consequences of the global business trade are in (1) building the expanded global market with a lot of opportunities for employing people in different countries; and in (2) intensifying the strong economic connections between the developed and developing countries to improve the state of the low-income populations and undeveloped economies.
The negative consequences of the global business trade are in (1) the possible exploitation of the human resources from the source countries; and in (2) the possible host countries’ domination within the source countries’ markets.
8. To minimize outsourcing, a source country can state the wage standards for employees and a list of conditions which should be realized in the source country.