Chapter 7

identify the characteristics of jobs that are thought to make them more susceptible to offshoring.

*easy to routinize *inputs/outputs easy to transmit electronically *little need for worker interaction *little need for local insight on unique cultural factors

A lead policy

a company uses this for jobs requiring skills that are crucial to its success

A lag policy

a company uses this for jobs that can be easily filled in the local labor market

A match policy

a company uses this for jobs that requires skills that are not very critical to its success

_____________ is a return (profits) received from activities that are in excess of the minimum pay level needed to attract people to those activities.

rent

Identify the factors that shape external competitiveness

1. Competition in the labor market for applicants with various skills 2. Competition in the product & service markets 3. Attributes unique to each company

The most common competitive pay level policy involves _____________

matching competitors wage rates