Friday, September 9, 2011

Flattener

The flattener that I beleive was most significant would be offshoring. I believe that this is the most important flattener because it allowed companies to become more competitive in their market by sending thier jobs outside the U.S. to foreign countries. This in turn leads to a decrease in overhead expenses and therefore a greater profit. Offshoring also lead to the communication between countries through things such as technical support, accounting, and even doctors. Lets take Dell for example; they sent their technical aspect portion of their business to countries outside the U.S. such as India in order to cut wage costs. They had a choice to pay employees in the U.S. an average of $10 per hour or if the sent their jobs outside the U.S. to half that. This increased their profits tremendously. This also forced the consumers to communicate with people outside the us and form a relationship that would help solve both of their problems.

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