How Offshoring Impacts the Global Supply Chain

Miacademy & MiaPrep Learning Channel

This educational video provides a comprehensive introduction to the concept of offshoring within the context of the global supply chain. Hosted by a narrator named Justin, the video uses the relatable example of a sneaker company moving production to Vietnam to explain complex economic concepts. It breaks down the definitions of offshoring and multinational corporations (MNCs), distinguishing between manufacturing offshoring (moving factories) and service offshoring (moving customer support). The video specifically uses Apple as a case study to illustrate how different economic sectors (secondary, tertiary, quaternary) are distributed globally. The content explores the primary motivations behind offshoring, such as reducing labor costs, avoiding trade barriers like tariffs, navigating business regulations, and capitalizing on government incentives. It addresses the economic mechanics of why a company like Samsung might move production from China to Vietnam to bypass US tariffs. Furthermore, the video dives into the concept of economic interdependence, explaining how countries rely on one another for goods, services, and jobs. From a pedagogical standpoint, this video serves as an excellent stimulus for critical thinking about globalization. It presents a balanced view of the impacts of offshoring, weighing the benefits—lower consumer prices and job creation in developing nations—against the drawbacks—job losses in home countries, potential exploitation of workers, and environmental degradation. It encourages students to form their own opinions on corporate responsibility versus government regulation, making it ideal for units on geography, economics, and civics.