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Effect of outsourcing
Is outsourcing affecting Americans
Effect of outsourcing on the economy
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Could outsourcing be causation for such a damaged economy? Outsourcing is the transferring of jobs in a company to another company for their resources; in this case, the damage is done when corporations commit to offshore outsourcing. Typically, outsourcing is utilized to reduce manufacturing costs, and also to take advantage of the low wages that are paid to the individuals to which the job is outsourced; however, that is not always the case. Outsourcing has taken the job opportunities of millions in the United States. The outsourcing of jobs by corporations is continuing to have a negative effect on America’s economy. Outsourcing is unethical, unjust, fair taxes are avoided by outsourcing, only corporations genuinely benefit from this institution, it is a catalyst in the fall of America’s economy, and outsourcing is placing damage on the fragile infrastructure of our economy.
The ethics of offshore outsourcing is questionable. The workers that the job is outsourced to are paid significantly lower wages than the typical wages for that area of expertise. Take China for example, the highest average minimum wage was 1,550 yuan per month, which roughly amounts to 240 dollars a month (“Wages in China”). Taking into account living expenses, medical necessities, and food consumption, 1,550 yuan is not a steady amount of money to be living off of; people manage, but principally, it is not very justifiable. Corporations already save millions from being spent by outsourcing, so they may as well pay the workers fair wages. However, that only applies to very low wage manufacturing jobs. Other jobs are also outsourced, but for those careers, the salary is modest. All in all, it depends on the specific job, but th...
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...happens, millions of jobs may be lost; furthering the fact that outsourcing does not improve the United States’ current state. Outsourcing does not have positive effects on the economy, other than cheap consumer products, although that cannot be deemed a plausible reason to continue this institution.
Outsourcing is morally wrong, outsourcing is not fair, outsourcing allows for fair taxes to be avoided, only corporations benefit from this practice, outsourcing is contributing to the economy’s fall, and outsourcing is damaging the already damaged economy. There are just too many negative aspects in outsourcing, in the respect that it continues to benefit only particular groups, while the rest are left to unfairly deal with this custom. Outsourcing is having an adverse reaction with the economy; although it may be fine now, it may prove to be a problem in the future.
Globalisation is a growing phenomenon that is the result of various developments in the global environment, each of which merits an individual analysis of its social impacts. For the purpose of this analysis, the focus will be placed upon arguably its most controversial aspect, offshore outsourcing. Offshore outsourcing, or offshoring, is becoming an increasingly common business practice as a result of a combination of the recent technological advancements in the areas of transportation and communication, and the increased competitiveness of the business world. From the perspective of firms, tapping into cheap labor from less developed countries is a very logical business decision to reduce costs and maximize profits. This has not only motivated businesses to engage in offshoring, it has sometimes been critical to their survival in fiercely competitive environments. Before making judgments regarding the righteousness of offshoring from different perspectives, its impact on stakeholders must first be evaluated.
...hored, individuals, families, and communities suffer the negative economic consequences due to limited job availability. Most people who work in these industry sectors are blue collars, who are not professional or academically qualified to work in other fields, as a result their job choices are limited, especially when the main industry in that community is to work in the stage of manufacturing. When there is massive unemployment within a single community the loss of manufacturing jobs can threaten consumers, creating other problems in the society that result in economic costs. Such problems may spiral into the loss of one's car or home, personal debt, and the lack of economical means to afford a child's education, thus continuing the cycle of economic poverty. These aforementioned consequences are indirect and important economic effects of offshoring American jobs.
Today, outsourcing plays a central role in the functioning of the apparel industry. By manufacturing their products overseas instead of in the United States, apparel companies are able to lower the cost of production. They pay less in wages and avoid the heavy regulations of the U.S. As a result, they are able to lower the retail prices of their products while still making profit. Benefits from outsourcing are so apparent that they lead one to wonder why a company wouldn’t outsource production. From the surface, outsourcing seems like the perfect way for companies to reduce their expenses, and remain competitive within the industry. A closer examination of the effects of outsourcing on the apparel industry reveals that some of them are not as positive as one would think, and that the negative effects are not felt solely on U.S. soil. Outsourcing apparel production takes jobs from Americans who would be working in the factories that are being moved overseas. Employees who work in the overseas plants don’t have it much better: they are barely paid enough to live on, and are often subject to mistreatment and hazardous working conditions. Outsourcing is without a doubt a good economic decision for companies that want to lower their cost of production, but is it also an ethical one?
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
Outsourcing is a complicated and a multifaceted subject that involves a “business[’s] purchase of parts or labor from another company rather than maintaining a sufficient enough number of its own employees to do the same work in the country where the company is already based” ("Outsourcing"). The first practice of outsourcing was in medieval times when “nation-states called in soldiers-for-hire to help their own military forces during ongoing conflicts” ("Outsourcing"). Many think of outsourcing as a one way trade of production facilities moving outside of a companies locale but in actuality it is a two way trade that also involves companies from other areas moving their factories to local areas where conditions are beneficial for the specific business. Outsourcing has evolved but the main idea has remained the same. The recent increase in outsourcing “was initiated by Wall Street pressures on corporations . . . . for increased profits . . . in the production of goods and services marketed in the U.S."(Roberts).
For advocates of global business, the hope is that outsourcing will help lift the United State’s economic growth and development by lowering the input cost of services (i.e. labor and materials) and by opening new markets abroad. Mainstream economists believe that outsourcing will have ...
As the problem of job outsourcing becomes more of an issue in politics, elected officials like the President and Congress will no longer be able to ignore the dilemma. The war in Iraq has been at the forefront of the presidential race but the importance of outsourcing American jobs seems to have been slightly overshadowed. If the issue of outsourcing is not watched carefully and a definitive plan hammered out, a trickling down of negative effects may occur within the U.S. economy. However, there is a polarized opinion on the effects of this “phenomenon”.
Since the concept of outsourcing was introduced it has been a subject of debate between politicians and citizens of the United States. Remarkably, it was the United States who supported outsourcing and now it is the United States that feels its economic progress is being threatened by outsourcing. One may argue that the financial situations that existed two decades earlier are not the same as they are today, thus the change of time, business priorities of economies have also changed.
Both sides can agree that outsourcing can be desirable for a business do to the potential profit. It allows goods to be made cheaper, management to run smoother, and money to be made faster (Salanţă 270). Both sides can also agree, however, that U.S. jobs are lost as a result of outsourcing (Ahmed 192), as well as environmental damage being cause due to corporations taking advantage of loose environmental regulations (Marquis 39). Upon digging deeper into this debate, one can find that both sides present very convincing arguments.
“5 Facts About Overseas Outsourcing.” Center for American Progress, Center for American Progress, 9 July 2012,
Do you ever wonder what our nations underlying focus is? The answer is simple and should be fairly easy to guess… Money! Outsourcing originated from someone coming up with the idea that we can make products for practically nothing in other countries and make very high profits. Although it seems like a great idea to businesses, it negatively affects our country. American consumers are buying these products that are made in other countries and the companies profits are continuing to rapidly increase. At the same time, people that are in the production field of work in America are losing their jobs because producers would rather pay foreign workers to get the job done for a much lower wage. When it comes down to it, one of the reasons our economy is suffering is because of outsourcing. Basically, it all comes down to money. The consumers don’t pay close enough attention to where the products are made. Therefore, consumers are spending extra money and are causing outsourcing to thrive. The lack of knowledge Americans have on the subject of consumers affecting outsourcing is leading our country to economic stress but if we begin to recognize the issue, the jobs we could potentially save may be our own.
...s at lesser paying jobs, whereas only twenty-six percent beg to differ. Because many immigrants typically come to America with next to nothing, they are obviously going to be more likely to work for lower wages. This is, also, why it is so beneficial for foreigners to start small businesses. Because they are willing to work harder for less money, this reduces the need for outsourcing. Sourcing Line Computer Economics shows that roughly 2.3 million jobs were outsourced in America in 2012. If immigrants were to replace these positions, shipping costs would decrease significantly. The value of the American dollar would be better protected. The need for communication between other countries in the making of products would no longer be needed. And most importantly, the quality of products would likely increase. Together, this makes for a tempting package.
Outsourcing has been around for many years. In this paper I will discuss some of the history of outsourcing, the goods things about outsourcing, and the bad things about outsourcing.
Global competitiveness has lead corporations to view offshoring as a necessity rather than as a choice. The advantage often viewed with regards to offshoring is the considerably lower wages available through offshored workers. According to Bryan ...
People need to get educated about the great impact that offshore outsourcing has on an economy. The global economy has started to thrive and offshore outsourcing has profited the consumers as companies want to cut costs and competition, which is why I support offshore outsourcing jobs to foreign countries. What does it mean to offshore outsource? Let’s first start by explaining what outsourcing means. The basic meaning of outsourcing is to obtain goods or services from an outside source.