Study Of The Effect Of The Outsourcing Industry In The International Production System

With the development of science and technology, outsourcing is most popular with entrepreneurs. More and more enterprises, especially MNCs deliver their non-core business to suppliers. The trend exists all over the world. Outsourcing becomes a new model of management. Multinationals outsource their business to corporations in developing countries. The new cross-border trade form becomes a tide in international trade. There are many economics papers to research for outsourcing, especially for cross-border outsourcing, nowadays. However, most of these papers focused on the phenomena of outsourcing, as far as outsourcing's effects and polices, the literatures are most based on the eyes of developed countries. Few papers are concentrated on the influence of developing countries. So the paper is trying to analysis outsourcing in the view of developing countries, discussing the implication and effects of cross-border outsourcing, and getting suggestions for China to make polices to carry on outsourcing business conveniently.The scheme of this paper shows as follows: the first section is introduction. The second section is literature review, from traditional international trade theories and new international trade theories in view of macroeconomics, to enterprise's competition ability in view of microeconomics. The third section discussed the relationship of outsourcing and industry internationalization. The forth section discussed the relationship of outsourcing and industry technology upgrading, which focused on international production system and modulation production network. The fifth section sited on software industry, comparing the development of software in India, Ireland from outsourcing, and analyzed the situation of software industry in China, also made an empirical analysis. The last section made some advice.