IGCSE Development Studies: Specimen Questions with Answers 46 - 47 of 98

Explanation

Outsourcing decreases the barriers to entry and increases the competition across the globe. It allows new entrants to enter the industries at lower cost.

Some of the Key Impacts of Outsourcing Are

• Increased growth of business- Outsourcing is a new win-win situation it helps the companies to avail themselves of better-quality services at reasonable rates which yields flow of money to the hosting companies.
• Reduced risk- Many countries from UK and US prefer outsourcing their services to various developing countries which has a pool of talent and follow strict data security policy. When companies outsource to the developing countries the risk of breach of data and sub-standard services are reduced.
• Increased business efficiency- When companies opt for outsourcing, they get extra time to focus on the core areas which helps them in increasing the overall business efficiency.

Explanation

Asian Development Bank (ADB) is a regional development bank which was established on 22^nd August, 166 with the main purpose of facilitating economic development in the countries of Asia. ADB members have grown from 31 to 67 of which 48 are from Asia and Pacific and the others are from outside.

• Promotes investment in the region of public and private capital for development purposes.
• Provide loans for the economic and social development of the member countries of the region
• Help member countries in coordinating their development policies and plan.
• Mobilization of financial resources through financing operations that cover official, export credit and commercial sources.