Are the Environmental Challenges and Ethical Dilemmas Fisher & Paykel Currently Face Outsourcing Manufacturing to a Developing Country Overall Beneficial to Australia?

In: Business and Management

Submitted By meganelizabeth
Words 3913
Pages 16
Research Essay 3000 words
Globalisation presents significant opportunities and challenges for business around the world. Are the environmental challenges and ethical dilemmas Fisher & Paykel currently face outsourcing manufacturing to a developing country beneficial to Australia?
Globalisation can be described as the intertwining processes of the world. It is not only an economic process, which involves rising communication and integration of all countries’ economies through the growth in international trade and investment, but also the rapid cultural, social, technological and industrial exchange between nations (IYP, 2002, p. 11). Globalisation presents significant opportunities, as well as many challenges, for business around the globe. Many companies are currently making the decision to move production offshore to lower expenditure and increase profits. However, there are numerous environmental challenges, as well as ethical dilemmas involved with outsourcing. Throughout this essay I will show how globalisation is connected with the present issue of New Zealand’s ‘Fisher & Paykel’ (F&P) Brisbane plant outsourcing manufacturing of their whitegoods to Thailand. Shown by exploring the reasons and challenges involved both in the business environment and ethical arena. Such ethical issues under scrutiny at present are the loss of Australian jobs and the replacement of low wage employment offshore. After the analysis of various sources of information, it will be clear that the move by Fisher & Paykel, to commence production offshore, is in fact beneficial to the Australian economy.
Globalisation is not a new process, but rather the result of human modernisation and advancement, and, industrial and technological development. Although the term ‘globalisation’ is widely used there is no clear or universally accepted definition. For the purposes of this essay, in the…...

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