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Influence of globalization on consumer behaviour
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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.
First, we will look at an example of how consumers inadvertently continue to assist companies with outsourcing. The problem consumers do not realize is that by paying for some name brand products, we are allowing outsourcing to take place. It is all in the hands of the consumers to change this. Typically consumers buy what they know, out of habit. It is up to consumers to read labels when buying a product and find a product made in the US. The jobs we would save by doing so could be our own. A specific example of consumers furthering ou...
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... the Acts that are being created, and the attention the issue is getting from many American citizens, we can begin to move forward with this issue and get outsourcing under control.
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. We have examined how consumers unintentionally assist the growth of outsourcing and the different ways we as individuals can attribute to a solutions. Also we have explored an attempt the government has taken and how people are trying to further this attempt and gain further understanding so we can work towards a successful solution. Hopefully we can further inform American consumers of this issue and help them to understand how much control they have over outsourcing.
With these commissions in place, tougher legislation, laws, ordinances, and precedents that will be in place working together to rid the world of these horrible sweatshops. As well as the devastating circumstances they can bring in such occurrences as fires or other natural disaster events. Even though almost ninety years later sweatshops still exist. These sweatshops at the present day are almost unheard of here in America, but continue to be in foreign third world countries. As horrible as it is to
The very existence of offshoring is in and of itself evidence that, at least in most cases, it is advantageous for firms to engage in offshoring. However, as is the case with most business activities, its externalities can affect various stakeholder groups in both positive and negative ways. In society’s view, stakeholders to consider are Canadian workers, Canadian consumers, competitors, shareholders and executives, citizens of other countries, and future generations.
Corporations in the United States have proved time and time again that they are all about profit and not about what is good for America. One example of this is the fact that many corporations have factories in other countries, or buy from other corporations that do. Nike (an athletic shoe and clothing company) produces most of their shoes and apparel in factories in other countries, including Japan, South Korea, Indonesia, China, Vietnam and Malaysia. According to Nike’s factory disclosure list released May 2011, only 49 of it’s over 700 factories are located in the U.S. (Nike, Inc.) This means that thousands of jobs that could be filled by needy Americans are instead being filled by workers in other countries. This reason that Nike and other corporations outsource is very simple, it is very cheap to do so. In an excerpt from Jeffrey St. Clair's book “Born Under a Bad Sky” the author describes the vast differences between Nike’s production costs and retail prices. “In Vietnam, it costs Nike only $1.50 to manufactu...
When you go to the mall to pick up a pair of jeans or a shirt, do you think about where they came from? How they were made? Who made them? Most consumers are unaware of where their clothes are coming from. All the consumer is responsible for is buying the clothing from the store and most likely have little to no knowledge about how it was manufactured, transported, or even who made the clothing item and the amount of intensive labor that went into producing it (Timmerman, 3).
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).
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.
According to the article “Restoring American Competitiveness” by Gary P. Pisano and Willy C. Shih, the United States industries have worn down competition through the damages from outsourcing manufacturing. There are several issues that have caused serious problems to the U.S. economy, which have caused the decline of trade due to shortage of innovation and competition. Theses problems are lack of funding for research and development by government and businesses and poor financial decisions made by management for outsourcing. There are several recommendations that the government and business executives can do to rebuild U.S. industries.
...e private sector to find new growth opportunities and create new jobs. Furthermore, America always has been, and always will be a country of immigrants. Despite that rich tradition, Congress has not updated the country’s immigration policies in three decades. However, Congress now has an opportunity to fix the immigration system and improve the economic well-being of all Americans. Failure to address the issue will have severe consequences for America’s future and well-being, and that is why how America reforms the immigration system will determine its future. The current immigration system is outdated, broken, and reveals that Comprehensive Immigration Reform is urgently needed, and is good for America’s workers and the economy. Despite the claims, complaints and the resistance of many, Americans should welcome, accept and support Comprehensive Immigration Reform.
Illegal immigration was an issue in the past and is a pressing problem in the present. The U.S. Government has been trying to find a resolution to this issue for years. The United States approved the Immigration Reform and Control Act in 1986, which allowed the American Government to punish American companies that consciously employed illegal immigrants (Nadadur 1037-1052). The United States’ Government Immigration Reform and Control Act has been unsuccessful in controlling illegal immigration. It is estimated that illegal immigration into the U.S. has a yearly interval of three hundred fifty thousand people (Rousmaniere 24-25). It is apparent that the 1986 act was not able to keep a handle on illegal immigration. Illegal immigration continues due to the fact that immigrants only take the jobs available to them, which in turn helps support the United States’ economy, so measures should not be taken to halt immigration.
Outsourcing has been around for many years. In this paper, I will discuss some of the history of outsourcing, the good things about outsourcing, and the bad things about outsourcing. Outsourcing is important because many companies rely on it in order to get many different products and services to their facility on time and in good shape. Outsourcing is a huge part of the business industry today. Any business can be affected by outsourcing.
Large corporations seeking the extra dollar to pocket are willing to spend whatever it takes to reduce the cost of production and increase profit margins. Doing whatever it takes in some instances can help men moving operations overseas to developing countries who are glad to be working. These developing countries unemployment rates are extremely high, so any job that pays is great to have. Americans lose jobs to foreign workers because the American economy is one of the largest in the world and its citizens enjoy great standards of living, when juxtaposed with a city of the same size in Taiwan. Labor costs play a huge and crucial role in corporations, which in turn pay the profits to the corporate giants who run, manage, and own the businesses.
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.
Throughout this term, my fellow classmates and I have had a chance to participate in a group project with two or three of our peers. The general topic was a vivid problem in a industry. Our class had a very wide and diverse sets of topics: from Styrofoam, to industrial hacking, to corruption in an influential international organization like FIFA, and so many more. Our group decided to develop a project named “Outsourcing and the price we pay for brands”. The name itselves is somewhat self-explanatory, however the problem is so much more complicated and interesting. In this paper, many struggles and concerns, of the group and of my my own, will be unfolded as I reflect the progress of this project.