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Brief introduction of outsourcing
Effect of outsourcing on the economy
Outsourcing jobs
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Outsourcing has a solution, and the President and Legislators can help to solve this problem. To compete with foreign countries, the U.S. Government must create more jobs here in America for the American people to rebuild the economy and protect the environment. The Government should prohibit companies from outsourcing jobs to foreign countries and protect American jobs by creating programs that will help us make the change to new jobs. Job training opportunities, financial compensation like tax breaks for job creations, health benefits and salary should all be included.
The U.S. Government has to give corporations financial incentives to keep the jobs here, such as tax incentives. It has to be a win for the economy. Otherwise, companies will continue to take the jobs overseas. In the late 1990’s the high tech jobs did wonders for the economy helping to reduce the jobless rate to its lowest level in decades. These days, most high tech jobs have been outsourced to foreign countries which leave many American job seekers looking for jobs or standing in the unemployment line.
The first advantage is the economy. Outsourcing U.S. jobs to foreign countries has stimulated investments for some foreign countries. Some have built economies predicated on outsourcing. President Obama has proposed several tax measures aimed at encouraging American companies to bring jobs home. He laid out a vision for strengthening the US economy and by focusing on tax inequality and making the case for his economic leadership (Garcia, 2012). Also, in 2004, Senator Kerry attempted to reverse the outsourcing of U.S jobs by proposing a bill that will give tax incentives to American companies to keep jobs in the United States, close tax loopholes that require...
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... highest tax rate in the world. This needs to be changed. They need to lower the rate for companies that choose to stay here and hire here in America.
Conclusion
The outsourcing of U.S. jobs can be solved. The President and Legislators of this country will need to work together as a team to stop companies from sending jobs to foreign countries. They need to promote jobs and repair the terrible damage the recession has done to make America more competitive with other countries. The unemployment rate has decreased, but we have a long way to go if the Government does not prohibit U.S. companies from outsourcing jobs to foreign countries. As middle class Americans, we have to make our voices heard. We need to convince our politicians that outsourcing has damaged the economy and they need to create incentive packages for U.S companies to bring our jobs back 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.
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...
As American’s, we are taught at a young age how great it is to be a citizen of the United States. Though Americans today are perceived much differently by people around the world, as they see American as being a money driven country, as they use one word “Capitalism”. What is being said here is, American companies are more interested in turning a profit, by offshoring their businesses to avoid taxes, rather than providing jobs and replenishing the American economy. Companies such as Apple have avoided these taxes by taking out loans to buy back stocks, these loans become tax deductible, and allow them to minimize their tax expenditure. The previously described is known as Globalization. The articles “Sweat, Fire and Ethics” by Bob Jeffcott
The only option is to get the jobs back. Having major manufacturing in the United State once more will give more people the opportunity to work, feeding the unavoidable supply and demand money cycle. The more jobs there are, the more revenue the government makes, and the more money that goes through the economy.
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.
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.
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”.
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.
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.
157). In most cases, the organization will have positive consequences since they are the ones considering the outsourcing. Mintz says that benefits an organization gets from outsourcing include increased productivity and allows current management to focus on clients (2004, pg. 6-7). The current employees and families will have experience job loss. The current community will potentially lose tax income, increase unemployment, and families will leave the community. The potentially new employees and families will have new jobs that will provide wages and benefits. The new community will get increased tax revenue and population
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 is no longer needed.
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.
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.
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.
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