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Labor, GDP And Firm Labor Is An Essay

Labor, GDP and Firm Labor is an important factor of production for all firms. The most recent unemployment rate is estimated at 9% (January 2011). Economists have identified three types of unemployment. Which type would affect your firm? Explain.

The three types of unemployment include: structural, changes in technology and shifts in tastes. Structural is when there is a lack of demand for workers with particular skill sets. Changes in technology, takes place when innovations and scientific breakthroughs are leading to a shift in the way businesses are operating. This is the point when there is a decrease in the total number of employees working for a particular firm. Shifts in taste are occurring when consumers want to purchase a particular product or service based on the underlying amounts of popularity. During times when there is a change in tastes, is the point that sales will decrease and those employees who are working for these firms will lose their jobs. The kind of unemployment that is impacting our firm is structural. (Moffat, 2011)

Do you think your firm would benefit from outsourcing? If you chose a firm in which outsourcing is not feasible, you can still discuss the advantages (or disadvantages) of outsourcing.
Yes. The reason why, is because outsourcing will allow our organization to lower their cost structure dramatically and increase their overall levels of productivity. Once this occurs, is when the business can be able to quickly adapt to changes that are taking place inside the markets. This is the point that they can be able to maintain their levels of penetration and concentrate on other segments that will improve their bottom line numbers.

If a U.S. firm hires foreign workers abroad, would these wages count in the U.S. GDP? (i.e. A Chinese citizen working in a Nike factory in China) Why or why not?

No. The reason why they would not count is because; the actual product is manufactured in China. This means that it is being exported into the United States for sale. As…

Sources used in this document:
Bibliography

US Consumer Confidence Plunges to Recessionary Levels. Telegraph. Retrieved from: http://www.telegraph.co.uk/finance/economics/8848977/U.S.-consumer-confidence-plunges-to-recession-levels.html

US Unemployment Rate Forecast. (2011). Forecasts. org. Retrieved from: http://www.forecasts.org/unemploy.htm

Moffat, M. (2011). What are the Three Types of Unemployment. About. Retrieved from: http://economics.about.com/od/typesofunemployment/p/three_types_of_unemployment.htm
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