tions accumulate wealth and prosperity. Free trade, as defined by Smith, is not restricted by quotas, licenses, taxes, safety concerns, inspections, or limits of any kind. As such, companies can seek to identify the best competitive advantage. There are numerous practical difficulties in implementing free trade as strictly defined. Buyers want to obtain goods at cheaper prices. Sellers want to get the maximum price for their goods. The market however, eventually will determine the price and the value that is conferred on any product. This ensures that the resource- optimization and resource-utilization in any organization is important.
             Outsourcing has existed in some form or the other for centuries, with craftsmen contracting out tasks that they did not have the specialty in to another. The industrial revolution however formalized division of labor and task specialization. Organization sought to work in areas of their core competencies and contact supporting work from other operations. For instance, the auto industry depended on steel manufacturers and tire manufacturers for critical raw material (sheet metal) and finished products (tires). However as organization grew into large operations, previous small supporting operations have now become challenging for organizations to keep ahead off. Customer relationship and customer service and support are becoming defining factors by which a company is measured by its customers. In the past, this aspect of the company was not very relevant or as widespread as it is in the current environment. Organizations are realizing that they can hand over the running of these supporting aspects of organizations to companies that specialize in these areas and have the necessary skill sets and technology without investing in these areas themselves.
             Outsourcing broadly can also be defined as process of contracting out jobs and activities to external firm who have the capabilities and the c...