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How outsourcing affects the economy
Effects of outsourcing in america
How outsourcing affects the economy
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Disney World, “the happiest place on Earth,” laid off approximately two hundred and fifty (250) employees, or cast members—what Disney refers to its theme park workers—that operated the data systems at the amusement park in the article “Pink Slips at Disney. But First, Training Foreign Replacements” written by Julia Preston. Disney World laid off 250 cast members, who were required to train their replacements for their jobs over the course of three months. These 250 employees were described as victims of outsourcing. The cast members’ replacements were immigrants on temporary visas for highly skilled technical workers that were brought in via an India outsourcing firm. These temporary visas are referred to as H-1B, which are granted to …show more content…
But First, Training Foreign Replacements” by Julia Preston covers only a few relevant topics dealing with international marketing. The main topic covered in the article reveals to be the main concern dealing with outsourcing. Outsourcing is a subcontracting process to a third-party company. According to our text Global Marketing, outsourcing is defined more specifically as the "shifting jobs or work assignments to another company to cut costs. When the work moves abroad to a low-wage country such as India or China" (Keegan & Green). Outsourcing reveals to be rather complex, impacting companies and businesses in different ways, both positively and negatively. The article mainly focuses on the issue of outsourcing in terms of the temporary visas known as H-1B, which are visas for immigrants that possess advanced science or computer skills. The article discusses how the company outsources from a firm based in India in order “to be more current and nimble” and “reduce costs when possible due to wage weaknesses in wage regulations” (Preston, Web). On the other hand, outsourcing negatively affects the Disney employees, or cast members, by causing American workers to lose their jobs or career opportunities and be replaced by temporary visa highly skilled technical immigrants for lower pay. Outsourcing is sometimes referred to as …show more content…
But First, Training Foreign Replacements” reveal the importance of the article to an international marketer. Outsourcing and offshoring prove to be the few topics one can learn in this article. An international marketer gains a better understanding of outsourcing and offshoring by recognizing the effects on the company, business, and economy. An important aspect of an international marketer’s career is to assess the market from a global perspective. An international marketer needs to know whether a company is outsourcing it’s employees incase they do not and need to market and appeal to potential employees for the company. An international marketer needs to understand the effects and how the topics outsourcing and offshoring work to gain a better grasp the company or business as a
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.
In the 1960’s American Companies started offshoring job positions to Asian countries, and Hispanic countries. American Companies started offshoring American Jobs because their business was more profitable in other countries, so in order for the companies to be closer to those countries American Companies started hiring employees in those countries. Furthermore, as American companies realized how much money they could save by offshoring jobs to other countries with low income they started offshoring more jobs with the purpose of saving money. As American companies offshored white and blue collar positions, their profit incremented and they were able to invest more money in their products. The objectives of this report are the following:
Mankiw and Swagel (2006) argue outsourcing is not as large a phenomenon as the media describes. Their research indicates outsourcing accounts for very little of job loss in the United States, nor has it made a distinct contribution to the slow rebound of the labor market. They go on to propose that increased overseas employment has actually contributed to higher employment in parent United States companies. They reported that while 30,000 jobs were lost per month in 2004, two million job changes per month were happening as well. They reference the Bureau of Labor Statistics when they report that in 2015 there are expected to be 3.4 million jobs outsourced, but 160 million jobs gained here in the United States. They also claim that there is a rise in net US income by 12-14 cents per dollar of outso...
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.
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
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.
In recent headlines, the H-1B visa has come become a debatable topic. The number of visas distributed to skilled workers (H-1B) and who receives them, and whether the United States should increase or decrease the amount. Currently, the H-1B visa system is structure to administer 65,000 H-1B visas (Services, H-1B Fiscal Years (FY) 2014 Cap Season). According to the United States Citizenship and Immigration, 124,000 petitions were received during the 2013 fiscal year. (Services, H-1B Fiscal Years (FY) 2014 Cap Season). Some are suggesting that we need more skilled immigrant labor within our country for innovative and entrepreneurial exploration, while others are opposed to such a change and would prefer a decrease in the number of H-1B visas distributed, or are content with the current number of visas distributed. Such a decision requires research, and investigating in order to make a sound decision, on what is the best option. This paper discusses the purpose of H-1B visas, the main participants, the policy issue with the number of H-1B visas distributed, policy options and their costs and benefits, the importance, and the economic implications .
Slaughter said it’s a common perception that hiring overseas means fewer jobs in the United States. Not so, he said. While job losses are certainly true for some companies, statistics have shown that, generally, increased hires abroad also have complementary increases here.” (Kibbe, 2004)
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.
Walt Disney world benefits from its operations workers as they help their guests on and off the rides which can help guests feel well looked after and safe. They assist with audience control keeping guests safe and comfortable as well as maintain safety standards so no accidents happen and the guests can have peace of mind before they get onto the ride.
They include: excellence in leadership, excellence in casting, guest satisfaction, financial results, and repeat business (Coverly, 2013). As it pertains to leadership excellence, Walt Disney is cognizant of the fact that communication is indeed the key driver and foundation for a collaborative culture within the company. Therefore, in this regard, the company encourages the cultivation of collaboration by essentially creating an enabling environment where ideas are spoken without fear of favoritism. Hence, Walt Disney promotes the use of positive language as part of its strategy of fostering leadership and collaboration. The use of positive language lays a basis for the realization of excellence in casting as one of the company’s policies. It is necessary to note that according to Coverly (2013), Walt Disney does not refer to its staff as employees; rather, the company classifies them as casts within the whole business arena. This concept, as Coverly (2013) continues to elaborate, emanates from the cognizance by the company that each employee has an intrinsic and unique role to pay within the company. As such, it is more natural to refer to them as casts, rather than the traditional “employee” notation. This strategy is very influential in generating and sustaining employee motivation which stems
International businesses are also finding new ways of increasing diversity abroad. Instead of using expatriate employees as management, they are starting to hire locals. Companies that operate abroad are realizing that using expatriate employees is not a permanent solution. They are often expensive, and are not capable of translating their skills into the new environment. In a company that operates globally, it is important that the company knows how to relate to the local markets, and a great way to do this is by hiring local talent. Hiring locally is cheaper, there is not a language barrier, and they are accustomed to the business environment in the area(5). They can also help the business by providing a new perspective into international markets, and offer ways that the company can improve their diversity abroa...
Due to the globalization, there are more interaction between different countries. In the movie Outsourced, people have diverse cultures, race, and beliefs. In the flowing content, this paper will explore cultural aspects in the movie Outsourced and my own opinions and reflections.
Labor laws, wage disparities, intense competition and fluctuating currency values are the challenges that are making organizations worldwide to compete in marketplace with products requiring a great deal of labor, and it is now getting harder for some of these organizations to maintain employees abroad. As Mello (p. 610) mentioned that a greater percentage of United States workforces are moving their operations abroad to developing nations like China and leaving an increasing number of United States domestic workers without employment. The foreign markets for the products and services are not the only things enticing these organizations to enter these global marketplaces. There are other reasons these companies are joining the global market arenas. For example, the foreign labor markets, this has attracted interest in many organizations to expand globally (Gersten, 1991). The labor force growth rates in developing nations alone will continue expanding by approximately 700 million people by the year 2010, while the United States labor force will continue to grow by only 25 million. This shows that United States’ growth rate will drop and the opportunities for productivity growth rate will increase in developing countries.
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.