The Research Of Effects About RMB Appreciation On Service Outsourcing Of China

With the global economic liberalization quickly sweeping the whole world, service outsourcing industry also began to develop rapidly. The new round of global industrial restructure began to adjust, their main features is the service outsourcing industry, high-end manufacturing of high-tech and high value-added and R&D centers. Service outsourcing has become the one of main engines for global transnational direct investment. The main content of outsourcing services is information technology, business and knowledge process outsourcing. Undertaking service outsourcing helps to improve the international competitiveness of service industry, and help enterprises to realize the growth of value. Our government and enterprises should reasonably grasp the opportunity of international industrial transfer to promote the adjustment of our country’s economic structure and the economic growth mode, expand channels of our country’s labor force employment and promote our country’s service industry to leap development.In July21,2005, the people’s Bank of China announced the adjustment of RMB exchange rate system, from now on, our country’s RMB started on the road of floating exchange rate system. According the economical theories, we know that service outsourcing in the appreciation of the RMB is advantageous to host-countries. Our country’s service outsourcing has the cost advantage, and RMB appreciation reduces its cost advantage. In addition, our country’s service outsourcing is in accordance with the RMB for the main cost, income according to some foreign currency, RMB appreciation would lead to the foreign currency income decreasing. In such cases, our country’s service outsourcing enterprises, which have the management strategy of low profits and small scales, will be faced with great difficulties. In this paper, we research influence of our country’s service outsourcing using a combination of qualitative and quantitative research methods in the background of RMB appreciation, comparative advantage theory, transaction cost theory, core competence theory, value chain theory as theoretical base and data as date base, adjusts strategies and scale of our country’s service outsourcing in-depth research, and explores that the government and financial institutions can adopt what kinds of measures to help our country’s service outsourcing industry. First of all, this paper describes the outsourcing service connotation and classification. At present, types of our country’s service outsourcing are more and more, expanding the development area; then the relevant literature and economic theories are reviewed, and it explains causes of the developing service outsourcing in our country, it can improve the proportion of the tertiary industry to promote growth of our country economy, optimize the industrial structure and use technology spillover effect to master advanced technology. RMB appreciation brings the influence to our country’s service outsourcing from the positive and negative. Finally, this paper put forward the feasible proposals from the macro and micro, which is on the basis of the empirical analysis and the background of RMB appreciation.