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Offshoring Interim Report Outline
By: Ryan List, Wes Lambert,
Amanda Sayer, Queen Anaeki, and Camilo Forero

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I. Reasons for Offshoring
The practice of offshoring and outsourcing is a relatively new business initiative since the
beginning of the industrial revolution. At the wake of the industrial revolution, the United States
and the European Union generated a booming economy with the creation of manufacturing jobs.
The production boom supplied the upcoming middle class with job prosperity, which in turn lead
to the rise of the opportunity for upwards social mobility. The standard of production was to
manufacture close to the location to where the company’s products were consumed.
Consumption of their goods remained high due to the increase in purchasing power from the
middle class. This resulted as the economic quo for quite a while.
However, Western firms started sending manufacturing work abroad on a large scale, and
by the 1980’s this was well established. According to an article published by The Economist
“The movement was overwhelmingly in one direction: away from rich countries to places where
workers with adequate skills were much cheaper. Whether openly stated or not, lower labor cost
were almost a chief rationale” (The story so far, 2013). The trend has led to a series of debates
regarding a justifiable political reason to offshore, not just a business reason; citing that only the
offshoring companies and non-host countries are benefiting from the reduced production costs,
while many jobs are taken away from the local economy – attributing to a spending power
burden to less skilled workers and increasingly for the middle class as well. Such reasons have
placed a heavy political toll both nationally and across borders. Though, before formulating any
conclusions, one should examine the origins of the business practice, explore the broader scope
of reasons as of why companies offshore, and inquire the underlying implications that are
derived from the practice both to the local economy and globally. Likewise, as the economist
noted, cost is a major driving factor, but such claim only captures a small frame of the bigger
picture as to why companies choose to offshore.
The beginning of the offshoring movement served as the introductory phase – and
continues to be a remarkable facet – of what we now call globalization. The following was
retrieved from an offshoring report published on a journal by McKinsey & Company: The
practice focuses on the relocation of labor-intensive service industry functions to locations
remote to the business center. It has been enabled by two main changes in the business
environment. First, the improvement in international telecommunications capacity, and the

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concomitant step-change reduction in global telecommunications costs fundamental to the
economics of offshoring. Secondly, and equally importantly, over the past two decades the PC
has enabled the computerization and digitization of most business services. As a result of these
two changes, information can now be transmitted over long distances at very low cost and with
little loss of quality. These changes can make organizational boundaries and national borders
much less important in deciding the location of service functions (Farrell & Baily, 2003).
The journal references the advances in technology that have led to the wide-spread and
increase popularity of offshoring practices. Uniquely, the internet can be cited as the most
influential factor that has bridged the gap between vast geographic distances, translating into the
ability to be able to immediately transfer information regardless of the location. Internet
advancements have laid the framework for effective telecommunication methods, and the
enablement of computerizations of most business services. According to the World Bank: the
majority of outsourcing destination countries, such as but not limited to, India, China,
Philippines, Brazil and Taiwan have achieved a proficient level of internet availability per
hundred people (World Bank 2014), in order for businesses to satisfy the needs of both the host
and the offshoring country to conduct reliable offshoring practices.
Alongside the improvements brought by the internet, there has been a substantial
improvement in effectiveness of shipping of goods and a systemization of logistics on a global
scale. Companies now enjoy reliable transportation of their goods on an efficient basis that
circumvents globally. Businesses have the option to choose from major vendors of logistic
solutions such as United Parcel Service or DHL for example, as means of outsourcing
transportation. Furthermore, there is a wide array of specialized logistics solutions that are
tailored to the industry needs. The global business model relies on a network of suppliers and
partners, and through improved logistics it has become very feasible for businesses to
increasingly expand their supply chains overseas to tap into high-growth emerging markets.
As a result of tapping into high-growth emerging markets, only developed countries are
the ones that can make offshoring feasible overseas. With that being said, only a few numbers of
countries around the world have the economic and political structure to make offshoring a
practical and profitable venture. An offshoring report from McKinsey&Company (2003) shares
the insight that U.S businesses dominate the global share of offshoring, accounting for 70% of

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the total market. Europe and Japan account for the remainder of the market, with the U.K as a
dominant player. Consequently, both the U.S and U.K have liberal employment and labor laws
that allow companies greater flexibility in reassigning task and eliminating jobs (Farrell & Baily,
2003). As a result, both countries are the leaders in offshoring due to the flexibility that is
essential to conduct the offshoring opportunities effectively and in accordance with trade
regulations.
Furthermore, another trend that comes from the supply-side element, as to why the U.S
and U.K tend to offshore – is because English is the standard language of business. With that
being said, the availability of an English-speaking population is a key factor of choice to
determine the location of offshoring services. Such advantage gives the U.S and U.K the ability
to operate smoothly without the need of translation services, which can be a decisive factor on its
own as to justifying the offshoring, or outsourcing of a service. The world supplies both
countries with various countries that speak English proficiently such as: India, Pakistan, Nigeria,
Philippines, and Israel, which are proven to have a large population of English speaking
individuals sufficient enough to conduct business according to a publication in the Journal of
Multilingual and Multicultural Development (Fitzgerald & Paulston, 2011).
Additionally, another reason to offshore ties back to furnishing foreign economies
increased jobs. In turn increasing foreign purchasing power parity increases. This gives the rise
of opportunity for companies to bring new revenues from foreign markets that could not be
tapped before. McKinsey&Company provides us with a statistic that “for every dollar of spend
offshored, offshore services providers buy an additional five cents worth of goods and services
from the U.S economy” (Farrell and Bailey, 2003). This leverages the U.S economy with more
income from exports.

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II. TYPES OF SOURCING AND SHORING
There are various types of sourcing and shoring methods; the main two are offshoring
and outsourcing. These two types are synonymous to one another. The main differences between
offshoring and outsourcing as far as American jobs are concerned, is that outsourcing is easier to
reverse, as oppose to outsourcing which can be done via shorter duration contracts where the
entire cost of physical assets is not paid for by one company’s financial outlay. Nodoushani, O.,
& McKnight, J. (2012). When a company chooses to offshore, the company takes one of its
factories from the home base and moves the whole factory offshore to another country. There it
produces the very same product in the very same way, only with cheap labor, lower taxer,
subsidized energy, and lower healthcare costs. Nodoushani, O., & McKnight, J. When a
company chooses to outsource the company is taking some specific, but limited, function that the
company was doing in-house-- such as research, call centers, or accounts receivable-- and having
another company perform that exact function for them and then reintegrating the work back into
the overall operation. Nodoushani, O., & McKnight, J.
Other than the two main types of shoring and sourcing there are more sourcing strategies
that are looked at by companies, one being right sourcing, which is when a company implies the
use of common sense to determine where certain services should be delivered. The right location
of tasks and services is driven by quality, cost and availability of talent. Right sourcing is directly
tied to business goals and should be unique to each company -- meaning there is no cookie-cutter
approach to determining what sourcing model will work best for your company. (Outsourcing
Vs. Insourcing: You Need Both - InformationWeek. (n.d.).)
Another sourcing strategy is insourcing, which is when entrepreneurs and manufacturers
make the decision to keep factories and production facilities in the home-base--or even bring
back jobs home from overseas. Compton, M. (2012, January 11).
Another sourcing strategy is restoring, which “is generally defined as moving
manufacturing back to the country of its parent company” Ellram, L. M. (2013).
Another is near shoring, which is one of the forms of outsourcing, it is when organization
outsourcers its business processes to an outsourcing partner who provides cheaper services. The
main differentiator between offshore outsourcing and near shore outsourcing is that the

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outsourcing partner in near shore outsourcing is located geographically closer than the
outsourcing partner in offshore outsourcing.
Captive offshoring is defined as the shift of product development projects or project
phases from multinational corporation (MNC) units in high-wage countries to subsidiaries in
low- or medium-wage countries to internalize cost savings and access complementary resources
and capabilities, such as qualified engineers and scientists, equipment or accumulated experience
(Manning et al. 2008; couto et al. 2006; Norwood et al. 2006; Farrell 2005; Farrell et al. 2006).
Boehe, D. (2010).
Another sourcing strategy is on shoring, which is similar to offshoring as well. Onshoring
is the transfer of a business process or service to the non-metropolitan areas in the same country
as the business, but where the costs of labor and operations are lower. Onshoring can also
include the situation where businesses allow employees to work from home.
In addition to the sourcing strategies, there are three distinctive types of offshoring, the
first being offshore outsourcing; which is when service providers are geographically located at a
far off location. Ahmed, F. A. (2014). The second distinctive type of offshoring is, Offshore
development center (ODC). An ODC is designed to create a long term cooperation between
service provider and customer. Also for software product research and development / large scale
software system developing and maintenance. ODC is set up outside the client's premises. The
client assures work for a dedicated number of resources for a significant amount of time. Tellus
Solutions » Offshore Development Center. (n.d.). And the third distinctive type of offshoring is
Captive shared services. Which is when an enterprise chooses to establish a wholly-owned
subsidiary to perform particular services for all corporate affiliates. Wholly-Owned Operating
Subsidiary ("Captive" or "Shared Services Center") | Outsourcing Law. (n.d.)

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III. Benefits of Outsourcing
As mentioned before, outsourcing has been around for many years but in the last decade
it has become very popular because companies are realizing the success outsourcing gives to
their companies. (Peters 2002). Outsourcing is obviously done for a reason and that reason is
because there are many benefits that come along with it. There are nine main benefits when it
comes to outsourcing: ability to focus on core activities, cost and efficiency savings, reduce
overhead, gain operational control, staffing flexibility, continuity and risk management, ability to
run a business 24/7, improve customer service, and give a company a competitive edge. (Peters
2002 & Wadwhi).
The first benefits that are most important are the cost and efficiency outsourcing saves
which in reality is what every company’s goal is. The cost outsourcing saves is the number one
reason as to why most companies choose to outsource because if executed correctly outsourcing
can save companies millions of dollars by doing certain jobs that are normally done domestically
with the same quality but at a much cost which is usually a savings of 60% (Peters). Then by
cutting costs, a company can then execute the job at a more efficient matter. For example, if
there is a company that is too large and cannot deal with their accounting firm due to being
understaffed or that does not have a staff that specializes in that particular process; by
outsourcing they can not only save the cost but then allow those workers to focus on what they
are good at and therefore make the company as a whole become more efficient in their work
(Bucki 2015). By having more efficient workers can lead to another benefit of outsourcing which
is having the ability to focus on the company’s core activities. This benefit will become relevant
when there is a company that is expanding very quickly and starts to consume more and more of
their resources and not only the human resources but the financial resources as well. This will
cause them to stray away from the core activities which created the company success. However,
by outsourcing to a third party this extra workload will be gone and will allow the employees to
continue to focus on the core activities that made the company successful (Bucki 2015).
The next benefits that can come from a company outsourcing is the ability to reduce
overhead and gain operational control. Outsourcing could have the ability to reduce overhead in
a big way. It will allow a company for example who needs much more office space but the cost
to move or increase the space is too expensive, but if the company starts outsourcing some of the

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simple operations then there will be no need to spend those costs on a new facility therefore
outsourcing has saved costs on the company in a different way (Bucki 2015). The other reason a
company will benefit from outsourcing is being able to gain control over the operations. This is
shown through an example of when a company is having trouble running or managing certain
departments efficiently, and instead of maintaining this poor management, the company
outsources to a third party who specializes in management and for a cheaper and more efficient
cost gets the company running smoothly again (Bucki 2015).
Outsourcing is not only beneficial by cutting costs but it also benefits by giving a
company a competitive advantage through staffing ability, risk management, better customer
service and the ability to run the company 24/7. The first way it gives a competitive advantage is
through being able to manage their risk. This focuses on the certain times when turnover rate is
high for a company. When this happens and there are not enough employees to allow the
company to run smoothly, outsourcing the human resources will allow the company to not hinder
but let the company keep flowing smoothly (Bucki 2015). Another way outsourcing can manage
risk is by allowing the company to share the burden with the outsourced third party (Peters
2002). The other benefit that outsourcing provides to give a company a competitive edge is
through the staffing ability. This is a huge benefit especially for companies that are in seasonal
business because during the off season they can outsource the employees at a low constant cost
to avoid unnecessary high costs for too many employees (Bucki 2015). Outsourcing employees
can beneficial in another way which is when current in house employees do not have the
necessary skills to accomplish the goal so they instead offshore others to come in and teach them
how to do it cheaper and more efficient (Bucki 2015). The next benefit from outsourcing that
gives a competitive edge is customer service. Although it is not dealing with customers directly,
having an outsourced department will increase efficiency and will then get the product
completed quicker and will therefore make the customer pleased because of how quick the
product or service was delivered (Peters 2002). Finally, outsourcing can give a company the
ability to run 24/7 by having locations around the world which means that the company can get
full use of the entire 24 hour a day and therefore there the work never stops and productivity will
always increase (Peters 2002).

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III. Disadvantages of Outsourcing
Even though outsourcing is full of many benefits and for the most part, outsourcing can
and normally does nothing but help and increase efficiency and productivity among a company.
However, like everything else there are disadvantages to outsourcing as well. The disadvantages
include: the possibility of the loss of managerial control, hidden costs, threat of confidentiality,
quality problems, bad publicity, inflexibility, and political and cultural problems (Rose India &
Bucki 2015).
The first disadvantage is the loss of managerial control. This means that if a company
does outsource a department to a third party, they will have a contract about what and how they
want it to be run, however since it is in the hands of a different company there can still be the
problem that they do not believe in the same values and beliefs and therefore could ultimately
make the domestic company look bad (Bucki 2015). If this does occur and the company and
outsourcing company are not compatible then the smarter decision would be to cut ties and
continue to operate with their own employees to retain control (Rose India). The loss of
managerial control also could lead to another disadvantage which is the threat of maintaining
confidentiality. Every company must have secrets and confidential information, by outsourcing
to another company, they are putting those secrets at risk of being exposed so it is very important
to make sure of a company does outsource, to outsource to a trusting and reliable party (Rose
India).
Outsourcing is done to save costs on a company but many do not consider the hidden
costs when undergoing outsourcing. This includes the legal costs in writing up a contract
between the two parties, payment of a consultant to find the outsourcing company, and the
training of the employees at the third party to be able to perform the task at hand (Rose India &
Bucki 2015). The other costs lead to the disadvantage of the possibility of inflexibility among the
third party. The mission of the home company may not be represented and because of this the
focus on the company’s mission towards the consumer will be lost and the money paid will not
create the benefit wanted (Rose India). This also could translate into the third party not
performing the quality up to par but rather the minimum to meet the contract which in return
could ruin the company’s name (Bucki 2015).

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Finally, the final disadvantage is simply that it could create bad publicity among the
locals. Outsourcing normally requires locals losing their jobs due to the outsourcing of their
department. This will create poor morale among the other departments within the company
(Bucki 2015). Then in the bigger picture offshoring can create political and cultural problems
due to corrupt politics within the offshoring company which can make it very difficult to
succeed. Then there is the cultural aspect which can cause misunderstandings of the company
due to language barriers (Rose India). In conclusion, even though outsourcing can be very
beneficial, companies must do their research and understand any country or location before they
decide to do it because even though it may seem like the smart thing to do, there are sometimes
hidden cons that must be addressed.
IV. Vendor Selection
Selecting a vendor for offshoring is perhaps one of the most important steps in the offshoring
process. This step in the process is so important for the fact that this is the step where
negotiations and contracts come into play, and a wrong vendor selection could send the whole
offshoring project off the deep end. The wrong vendor selection could endanger the business
plan you had imagined for growth, however the right selection could save your company money,
enhance your value and give you a competitive edge (OSF Global).
As with any new venture, there are costs associated with implementation. Researchers say
that selecting a vendor can cost anywhere from .02 to 2% of the total cost of the deal. For
example, if you’re sending $10 million worth of work to India, selecting a vendor could cost you
anywhere from $20,000 to $200, 000 each year (Overby). Other costs associated with vendor
selection include documenting requirement, sending out RFP’s and evaluating the responses, and
negotiating a contract, on top of legal fees (Overby). In the words of Vice President Ron Kifer of
DHL Worldwide, “There’s a lot of money wrapped up in a contract this size, so it’s not
something you take lightly or hurry with. There has to be a high degree of due diligence making
sure that the offshore company can respond to your needs (Overby).” Other costs to include are
travel expenses to the country of interest. An overseas trip is highly encouraged as offshore
vendors can send over there most highly qualified employee for a “dog and pony” show, but the
home turf situation is not as impressive (Overby).

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V. Why India is a major destination of offshoring
With low cost advantages, a good administrative setup, attractive foreign policies,
business environment and availability of skilled labor that is a unbeatable combination of huge
labor force and top skill level, a rich, foundational history of the best education systems in the
world due to British rule in the late 1700s which attributes to the high skill levels and English-
speaking ability. One of the biggest if not the biggest driver in why India is a major destination
of offshoring and their competitive advantages is their drive to continually innovate. In reference
to the value chain, “it has evolved immensely, now spanning the full value chain from low-end
BPOs [business process outsourcers] to high-end KPOs [knowledge process outsourcers]”
(Tennant 2014). “India scores over other places in terms of being an ideal destination for
investments mainly due to its vibrant democratic setup, which is aptly underpinned by a broad
legal framework and independent judicial system. Apart from these factors, the presence of a
vast network of bank branches, financial institutions, and a well-organized capital market
contribute to making India a preferred destination over other places by foreign investors.”
(GASME 2015). India meets the highest international standards in their huge network of
technical and management companies. The strategic location of the country in the context of the
third world market in the rapidly growing southeastern Asian markets such as China, Malaysia
and Japan, along with a growing and more foundational infrastructure provides India with a
competitive advantage over other countries for attracting foreign investments. The individual
offices of different industries have made special attempts to ease the rules and regulations related
to foreign investment in the industry and made policies more foreign-friendly so to attract more
foreign investment. The Indian government also allows foreigners to make direct investments in
the country's firms by way of acquiring share and debentures. This favorable government
initiative gives India an edge over other countries for investments. Today, there is hardly any big
company in the world who does not have their investment in India in one or the other way.
Several companies outsource their accounts and BPO operations to India. This is mainly because
regardless of the domestic issues, these companies get excellent service and value for the money
they invested.

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VI. Future of Offshoring
As far as the future of offshoring, many companies are reshoring and nearshoring because
of the increase in foreign labor wage rates and transportation costs. Saying that, hotbeds for
offshoring such as China and India, who are emerging markets, are still major players in places
to offshore but new countries are on the up and coming. In the past, offshoring has been
concentrated in a small amount of cities in India, Eastern Europe, and Russia like Hyderabad,
Bangalore, Delhi, Mumbai, Budapest, Prague, and Moscow. Especially in information
technology and software sectors, demand and price have dramatically increased. This has created
a push to go to countries like South Africa, Morocco, Argentina, and Brazil. Countries like
Dubai and Czech Republic are almost “secret” gold mines where companies are building plants
and finding advantages specific to the country and recruiting young professionals to work closer
to their home country. The new “hotspots” are becoming increasingly popular each for different
reasons. South Africa, for example, is attractive for banking and insurance sectors and has a high
demand for call centers which compensate for the higher prices of labor. “Morocco is now home
to customer-care and back-office processing centers that perform work for a number of major
French and Spanish companies requiring fluent speakers of their home languages.” (Harvard
Business Review 2012). These countries are finding their niche within markets and creating a
demand. Offshoring will continue to grow and expand into new cities and countries as long as a
comparative advantage in average cost is available. What many companies are battling is the
tension between high labor wage costs but high skills set and lower labor wage costs and lower
skills set. An equilibrium is being created of driving down costs and increasing skills which is
leveling the playing field as far as where to offshore. This will eventually lead to companies
returning to their home country because they can find what they need at home just as well and
efficiently as abroad. Companies decisions on where they offshore will be directly influenced by
where they can find the cheapest labor force. In a recent report on global manufacturing,
“McKinsey said that in the near future the world is likely to have too few high-skilled workers
and not enough jobs for low-skilled worker” (Economist 2013). So while reshoring is a current
trend, it is slow to develop and is presently less influential then it seems. This means companies
will start to specialize offshoring by taking advantages of these countries niches and special
offers. For example, a company like Chase Bank may go to South Africa because of their

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arbitrage opportunities in attracting bank sectors while a company like Walmart may go to
Bangladesh because of low labor costs.

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Works Cited
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service providers. IET Software, 8(6), 279-284.
Bloomberg, 02 Aug. 2009. Web. 14 Mar. 2015.
<http://www.bloomberg.com/bw/technology/content/jul2009/tc20090731_382752.htm>.
Boehe, D. (2010). Captive Offshoring of New Product Development in Brazil. Management
International Review (MIR), 50(6), 747-773. doi:10.1007/s11575-010-0054-z
Bucki, James. "Top 6 Outsourcing Disadvantages." About Money. N.p., 2015. Web. 11 Mar.
2015. <http://operationstech.about.com/od/outsourcing/tp/OutSrcDisadv.htm>.
Compton, M. (2012, January 11). Everything You Need to Know About Insourcing. Retrieved
March 13, 2015, from https://www.whitehouse.gov/blog/2012/01/11/everything-you-
need-know-about-insourcing
"Disadvantages of Outsourcing, Risk of Offshore Outsourcing, Disadvantages to Outsource."
Disadvantages of Outsourcing, Risk of Offshore Outsourcing, Disadvantages to
Outsource. Rose India, n.d. Web. 14 Mar. 2015.
<http://www.roseindia.net/services/outsourcing/disadvantages-outsourcing.shtml>.
Ellram, L. M. (2013). Offshoring, reshoring and the manufacturing location decision. Journal of
Supply Chain Management, (2). 3.
Farrel, D., & Baily, M. (2003). Offshoring: Is it a win-win game? McKinsey Global Institute
Report.
Fitzgerald, J., & Paulston, C. (2011). Language as a commodity: Global structure, local martket
places. Journal of Multilingual and Multicultural Development, 32(2), 202-204.
Retrieved March 11, 2015
Internet users (per 100 people). World Bank Database (2014, January 1). Retrieved March 11,
2015.

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Nearshoring. (n.d.). Retrieved March 13, 2015, from
http://www.outsource2india.com/why_outsource/articles/Nearshoring.asp
Nodoushani, O., & McKnight, J. (2012). Insourcing Strategy: A Response to Outsourcing and
Off-Shoring on the United States. Competition Forum, 10(1), 164-169.
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2015, from http://www.informationweek.com/it-strategy/outsourcing-vs-insourcing-you-
need-both/d/d-id/1111613
Overby, Stephanie. "The Hidden Costs of Offshore Outsourcing." CIO. 1 Sept. 2003. Web. 15
Mar. 2015. <http://www.cio.com/article/2442089/offshoring/the-hidden-costs-of-
offshore-outsourcing.html>.
Peters, Tom. "The Benefits of Outsourcing." - Outsource2india. N.p., 2002. Web. 14 Mar. 2015.
<http://www.outsource2india.com/why_outsource/articles/benefit_outsourcing.asp>.Wad
hwa, Vivik. "Outsourcing Benefits U.S. Workers, Too." Bloomberg.com.
“Steps to Selecting the Right Outsourcing Vendor.” OSFGlobal. OSF Global Services. Web. 15
Mar. 2015. http://www.osf-global.com.
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Tellus Solutions » Offshore Development Center. (n.d.). Retrieved March 13, 2015, from
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Wholly-Owned Operating Subsidiary ("Captive" or "Shared Services Center") | Outsourcing

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models/wholly-owned-operating-subsidiary-captive-or-shared-services-center/

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Citrico
Interview Questions for Kevin List and possibly his Partner
Interview Questionnaire
i) Reasons for off shoring and outsourcing
a. What core competency was off shored?
b. What supplemental processes where off shored?
c. Was the main objective to outsource a core competency or a supplemental process?
d. What new markets were gained due to outsourcing?
e. Was the outsourcing based on cost?
f. Was the company not able to provide the resources internally?
ii) Types of sources and shoring
a. What departments were outsourced to external parties?
b. Was a department off shored but not outsourced?
c. Was any professional serviced outsourced? Such as accounting, legal, purchasing
(supply chain), IT support, other specialized services?
d. Was any manufacturing process outsourced?
iii) Benefits of outsourcing
a. What improvements were accomplished due to outsourcing?
b. Where cost reduced? Due to less expensive labor? Better price for materials?
c. Did the company gain capital funds from outsourcing?
d. Did the company gain liquidity?
e. Did the outsourcing reduce the operational cycle?
f. Did the company gain leverage from global knowledge not available prior to
outsourcing?
g. Did outsourcing reduce company liabilities? Such as reducing risks
iv) Disadvantages and risks of outsourcing
a. What were the negative implications from outsourcing?
b. Was there risk of efficiency due to losing control for a process?
c. Were there any political disadvantages of off shoring?
d. Is English the primary language of the outsourcing company?
e. Are there any additions of third parties that can be liable to the company?
v) Vendor Selection
a. Was there any third party firms considered?
b. How many available firms were available to offshore?
c. Did the amount of firms produce a competitive price? Or was there little room for
negotiation?
**More questions to come**

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