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International trade and its effects
Is outsourcing affecting Americans
Does outsourcing hurt the economy
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How is outsourcing affecting American Citizens, its not only taking jobs away from us Americans but is also hurting our US economy. Outsourcing is when a company such as Apple sends jobs overseas to a country such as China and has factory workers there assemble the product for a much lower price. Yes this lowers the price of products but we have to take into account how many jobs this it taking from American citizens. Outsourcing jobs does lower the price of products but jobs should stay here in the US to build our economy and give American’s their jobs back. The issue on outsourcing jobs is not only jobs being taken away from Americans but its hurting our economy. There are many other smaller issues that are created when jobs are outsourced. Items such as containers that the items are shipped in, it is cheaper to build a new container where the item is being built than it is to ship the empty container back. That creates a smaller issue of having thousands of unused containers lying around. (Winkipeida, 2013) The larger issues with outsourcing are jobs for American’s being shipped overseas and American citizens being left with out jobs. If these Americans had the jobs that are being shipped overseas then more money would be in circulation and our economy would not only be able to recover from this rescission but grow. Money has to be in circulation for our economy to grow but if people do not have the money to spend then money will not circulate. Yes outsourcing jobs does allow lowering the price of products but you have to take into account what it cost to ship the products to America, which is fossil fuel being burned. If jobs were brought back to America that would allow more people to spend money on various things building... ... middle of paper ... ...s to buy products at a lower price but is it worth it in the end. More people are unemployed and they cannot buy the products and our economy is hurting from it. It looks good when a product is cheaper it attracts more customers but another thing is the quality. If products are created here they may be created with more quality as employees will actually spend more time as they will take pride in creating them as their friends and family will use them. When people create them foreign they do not know who’s going to use them and their getting paid near nothing. (Winkipeida, 2013) Outsourcing jobs does lower the price of products but jobs should stay here in the US to build our economy and give American’s their jobs back, after all the information and facts that have been included I hope you can make the correct decision and do your part to bring jobs home to America.
By offshoring American jobs companies will be able to profit from those positions. In contrast, employees will be affected and probably will need to gain more training in order to find another job.
Have you ever thought about those little words in fine print that tell you where a product was made? How about the last time you put tires on your car? Before you made a decision on the purchase did you stop and ask where the tires are made? Probably not! You heard the only words you wanted to hear....good and cheap! When did we stop caring about where a product is made or did we ever? Why would this matter anyway and what importance is of it? Some may argue that free trade and imports give us purchasing power. They believe cheaper goods results in more money in our pocket to buy other goods. That theory is a farce with little to no data to support it. Buying American made supports job growth, the environment and human rights. The impact on us, our children and the future of America is greatly impacted on our purchasing decisions.
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?
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 ...
The exporting of American jobs is an issue that is important and will become increasingly so as more and more white collar jobs are shipped overseas. American companies in the past few decades have been sending American jobs overseas paying residents of other countries pennies on the dollar what they had paid American workers to do. This saves the companies millions of dollars on labor costs but costs Americans precious jobs.
Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.
Many businesses hire low skilled workers for low wage, but many Americans are not willing to work for low wage. Moreover, many businesses want to keep their costs in a very low price, to achieve the high profit margin. They get their employees from other countries and moving production over the world. Many workers in the United States come from halfway across the world. Low-paid workers are used to produce and export raw material. Companies use cheap raw materials to produce products and invest to other countries with high profits. “People in the south still produced items for export to north--but now they export manufactured food as well as raw materials” (Chomsky 5). The New England was the first one to try out with new business in the U.S. southeast in the beginning of 21th century to find lower cost. “The New England textile industry was one of the first to experiment with plant relocation, shifting its production to the U.S southeast starting at the very beginning of twentieth century in search of lower costs” (Chomsky 5). The relocation program was very successful by the end of the
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.
American companies purposely make their goods in other countries such as India because their labor practices do not meet US standards and can easily be manipulated for maximum profit. By paying their employees extremely low wages, they are still able to manufacture their products. As a result they pull out more profit that does not have to be given back to their employees due to minimum wage laws not being in effect in these countries. In “Distributional Effects Of Globaliz...
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. No matter how big or small a business is a business is able to outsource services that they could not do profitable on their own.
We say that we are heading toward a more global economy because of the fact that competition in today’s markets is global. This means that corporations in the United States can compete in foreign markets and vice versa, therefore U.S. corporations and foreign corporations become interdependent and thrive off each other. This can have a good impact on the United States because it allows U.S. corporations to seek materials and labor outside of the U.S. in countries such as China, India, and Mexico, where workers are paid a lot less money than U.S. workers, thus allowing them to sell their products for significantly cheaper than if they were produced in the U.S.; however, the tradeoff is that many American workers in the industrial sector lose jobs due to this shift of labor to overseas. In the long run this will be beneficial for the U.S. and although some percentage of workers are losing work, new jobs in the services sector, in fields such as computer technology, telecommunications, and language skills are opening up and experiencing growth because of this change.
With the advent of the Internet, decreased shipping costs, and the removal of trade barriers, the world market has shrunk in such a way that everyone can be a player. While many businesses thrive solely on serving a small local area, a globalized company has the benefits of increased customer markets, gross production, and brand awareness. Take for example Coca-Cola; this multi-national corporation offers products in countries all over the world, operates in over 200 of those countries with the help of its franchisees, and is the most well-known beverage companies. It is interesting to note however, that as positive as globalization may seem, there are many negative ramifications and a large population of detractors to this movement. While increased product availability is good for profits, if a local market is inundated with imported products, locally grown or manufactured items may be squeezed out, to the detriment of the local economy. Although it is cost effective to have your product produced in another country with low wages, you are essentially taking away jobs from the people of your own country, negatively impacting your national economy. However, if you manufacture your products in a country with higher wages, you must increase your products’ prices which may be harmful to your profits. While maximizing your companies profits is always of great importance, it is essential that you weigh the pros and cons of globalization and its effects on not only your company, but the areas in which you wish to spread.
Next time you go shopping and buy a nice Christmas gift that you know would make someone very happy, take a moment to look at it and see where it was made, more than likely it will say "made in China" or "made in Thailand". Most of our goods that provide our happiness come from foreign countries just because the labor is cheap. In China the hands that make our clothes belong to a man who goes to work all day and makes less than $2 per hour, just so he can try to put food on the table for his family. These men and women (and sometimes children) have to work in terrible conditions and with no benefits and they barley scrap by each month. These workers work all day in a sweatshop, make very little money, and go to bed hungry just so we can get the material possessions that make us happy.
Many Americans are used to getting the products they desire, at any cost. Trade with other countries is a necessity to the US because of the needs of the American people. Some examples of consumption could be wine, diamonds and gems, and vehicles. Another driving force in the global economy is cost of labor. Imagine the amount of money some companies would have to pay American workers to do the same work as some third world countries. Offshoring has become a big factor in the global economy. Many companies have opened customer service centers in different countries due to the savings. Clothing companies moved their manufacturing plants to other countries due to the cost of labor. Major stores in the US, for example, Wal-Mart, brings in most of their product from other countries to save money and pass that savings onto the consumer. Capitalism in the US has recently helped the global economy, the benefits of the Americans in the world’s marketplace is seen the return of money to the rest of the
When Americans hear the word “offshore outsourcing”, they automatically assume that Americans are losing their jobs to foreign countries. Most of these jobs that companies outsource such as the garment industry jobs are offshore outsourced because they are labor intensive jobs. According to Timmerman