e in the labor intensity of production, as there is a tendency towards a more efficient use of labor. As such, LDCs will be realizing an increase in foreign investment, an increase in GNP and expenditures per capita. Most likely, there will be an increase in life expectancy; foreign debt In a long-term perspective, companies will be realizing decrease in production and service costs, transformation of fixed costs into variable, adjustment of the management strategy, which would make them more competitive. Concentration of outsourcing tendencies should be expected in countries with developed infrastructure and legal base. However, one should also expect adverse effects, as companies will have to significantly re adjust their management practices. Eventually, companies will be outsourcing most of their production processes, as this allows significant cost minimization, still placing an emphasis on own specialization field.

When it comes to speaking about the long term effects of outsourcing on Less Developed Countries, outsourcing opens multiple opportunities. Firstly, outsourcing makes the globalization processes fair and contributed to equal distribution of income. Secondly, not only existing jobs are being outsourced, but also new ones are being created in LDCs. Thirdly, LDCs under the current trend manage to enter markets that were initially dominated only by industrialized countries. Fourthly, there is an increase in the labor intensity of production, as there is a tendency towards a more efficient use of labor. As such, LDCs will be realizing an increase in foreign investment, an increase in GNP and expenditures per capita. Most likely, there will be an increase in life expectancy; foreign debt a

ries with developed infrastructure and legal base. However, one should also expect adverse effects, as companies will have to significantly re adjust their management practices. Eventually, companies will be outsourcing most of their production processes, as this allows significant cost minimization, still placing an emphasis on own specialization field.

When it comes to speaking about the long term effects of outsourcing on Less Developed Countries, outsourcing opens multiple opportunities. Firstly, outsourcing makes the globalization processes fair and contributed to equal distribution of income. Secondly, not only existing jobs are being outsourced, but also new ones are being created in LDCs. Thirdly, LDCs under the current trend manage to enter markets that were initially dominated only by industrialized countries. Fourthly, there is an increase in the labor intensity of production, as there is a tendency towards a more efficient use of labor. As such, LDCs will be realizing an increase in foreign investment, an increase in GNP and expenditures per capita. Most likely, there will be an increase in life expectancy; foreign debt

inimization, still placing an emphasis on own specialization field.

When it comes to speaking about the long term effects of outsourcing on Less Developed Countries, outsourcing opens multiple opportunities. Firstly, outsourcing makes the globalization processes fair and contributed to equal distribution of income. Secondly, not only existing jobs are being outsourced, but also new ones are being created in LDCs. Thirdly, LDCs under the current trend manage to enter markets that were initially dominated only by industrialized countries. Fourthly, there is an increase in the labor intensity of production, as there is a tendency towards a more efficient use of labor. As such, LDCs will be realizing an increase in foreign investment, an increase in GNP and expenditures per capita. Most likely, there will be an increase in life expectancy; foreign debt

to equal distribution of income. Secondly, not only existing jobs are being outsourced, but also new ones are being created in LDCs. Thirdly, LDCs under the current trend manage to enter markets that were initially dominated only by industrialized countries. Fourthly, there is an increase in the labor intensity of production, as there is a tendency towards a more efficient use of labor. As such, LDCs will be realizing an increase in foreign investment, an increase in GNP and expenditures per capita. Most likely, there will be an increase in life expectancy; foreign debt e in the labor intensity of production, as there is a tendency towards a more efficient use of labor. As such, LDCs will be realizing an increase in foreign investment, an increase in GNP and expenditures per capita. Most likely, there will be an increase in life expectancy; foreign debt and currency strength will also be realized. LDCs will get an opportunity to learn the western business practices and apply those, and, of course, idle labor utilization.

It should be further pointed out, that there are quite a few challenges resulting from outsourcing in LDP. Firstly, there is a distinct need to develop national policies in order to stimulate education as well as direct it into the sphere in which jobs would not be lost in the future to industrialization and machine work force. Secondly, most likely there will be a high level of labor turnover and even though distribution of wealth will become more equal on a global level, locally there will be significant differences in earning. As such, LDCs will have to undergo the restructuring process similar to that of U.S. too. Finally, on their way to development of outsourcing, LDCs have to develop a proper legal base. As pointed out by Grossman and Helpman contracting environment is directly correlated with the level of outsourcing concentration within a given territory.

As for long term implications for citizens of LDCs, both positive and adverse effects will be rea