Editing First World (section)

===Outsourcing===
[[Outsourcing]], according to Grossman and Helpman, refers to the process of "subcontracting an ever expanding set of activities, ranging from product design to assembly, from research and development to marketing, distribution and after-sales service".<ref name=OSC1>{{cite journal |last1=Grossman |first1=Gene M |last2=Helpman |first2=Elhanan |title=Outsourcing in a Global Economy |journal=The Review of Economic Studies |year=2005 |jstor=3700687 |volume=72 |issue=1 |pages=135–159|doi=10.1111/0034-6527.00327 |url=http://papers.nber.org/papers/w8728.pdf }}</ref>{{Better source needed|reason=This source is a working paper.|date=February 2023}} Many companies have moved to outsourcing services in which they no longer specifically need or have the capability of handling themselves.<ref name=OSC2>{{cite web |last=Quinn |first=J. B. |title=Strategic Outsourcing |url=http://www.decon.unipd.it/info/sid/materiale9/bel_eat_letture_ottava_settimana/quinn1.pdf |access-date=27 May 2017 |url-status=dead |archive-url=https://web.archive.org/web/20110722065135/http://www.decon.unipd.it/info/sid/materiale9/bel_eat_letture_ottava_settimana/quinn1.pdf |archive-date=22 July 2011 }}</ref> This is due to considerations of what the companies can have more control over.<ref name=OSC2/> Whatever companies tend to not have much control over or need to have control over will outsource activities to firms that they consider "less competing".<ref name=OSC2/> According to SourcingMag.com, the process of outsourcing can take the following four phases.<ref name=OSC3>{{Citation | contribution = Outsourcing – What is Outsourcing? | title = Sourcingmag.com | contribution-url = http://www.sourcingmag.com/content/what_is_outsourcing.asp}}</ref>

# strategic thinking
# evaluation and selection
# contract development
# outsourcing management

Outsourcing is among some of the many reasons for increased competition within developing countries.<ref name=OSC4>"http://www.international.ucla.edu/media/files/GlobalUnequal_10_252.pdf"</ref>{{Better source needed|reason=This source is a draft.|date=February 2023}} Aside from being a reason for competition, many First World countries see outsourcing, in particular [[offshore outsourcing]], as an opportunity for increased income.<ref name=OSC6>{{cite book |last1=Kansal |first1=Purva |last2=Kaushik |first2=Amit Kumar |title=Offshore Outsourcing: An E-Commerce Reality (Opportunity for Developing Countries) |date=January 2006 |publisher=Idea Group Inc (IGI) |isbn=9781591403548 |url=https://books.google.com/books?id=w4zJOECe_tAC&q=%22outsourcing%22+%22developing+countries%22&pg=PT133|access-date=27 May 2017}}</ref> As a consequence, the skill level of production in foreign countries handling the outsourced services increases within the economy; and the skill level within the domestic developing countries can decrease.<ref name=OSC5>{{cite web |url=http://admin.earth.columbia.edu/sitefiles/file/about/director/documents/labour1996.pdf |archive-url=https://web.archive.org/web/20100623001353/http://admin.earth.columbia.edu/sitefiles/file/about/director/documents/labour1996.pdf |archive-date=2010-06-23 |title=U.S. Trade with Developing Countries and Wage Inequality}}</ref> It is because of competition (including outsourcing) that [[Robert Feenstra]] and [[Gordon Hanson]] predict that there will be a rise of 15–33 percent in inequality amongst these countries.<ref name="OSC4"/>{{Better source needed|reason=This source is a draft.|date=February 2023}}