Outsourcing Improves Global Entrepreneurship
The idea behind outsourcing is that companies should do the work they do best. It can be, for example, a small business consultant who sets up shop by outsourcing part of their operations to others with more advanced skills.
Henry Ford, as an example did not start out with all his plans for the huge automobile success intact, he started out small. He tried growing their own rubber trees for tires.
Soon he realized they should leave the rubber business to someone who knew it well - the Goodyear company. The same rationale was applied to car parts, engines, headlights, etc. They are more economically bought from the companies whose business it is to produce them.
No company can stand on its own. Companies that produce the same items will compete with each other, but companies that produce complementary goods will inevitably cooperate and trade with each other. Why not help the complementary company, while helping one's own business?
At first this kind of outsourcing was mainly within countries and then grew into an international affair. At first, international trade consisted of imports and exports of raw materials needed for manufacturing and buying from other countries what cannot be produced at home.
However, with the lessening of trade restrictions, outsourcing which was seen as an alternative to high labor costs, escalated. It rose when the internet made healthy inroads into the economy, but hit a bump in the road with the dot.com debacle in the early 2000s.
The world is getting smaller because the internet connects interests and job opportunities all over the globe. Our interests become their interests and their interest becomes ours. No longer can any one country dictate to and mistreat their own people without everyone the world over knowing about it almost instantly. That is good. Potentially it will have the effect of creating better business ventures and healthier commerce around the world.
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