Outsourcing in the U.S. Apparel Industry: Economic Benefits and Ethical Concerns

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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?
The apparel industry (as well as many other industries in the U.S.) has seen a sharp rise in outsourcing manufacturing overseas – a trend that does not seem to be slowing down. In 1980, $250 billion were spent on importing goods from foreign countries (Cho and Kang). By 1999, this number almost quadrupled to $937 billion in 1999 (Cho and Kang). More recent data also shows a significant surge of apparel production outsourcing. In 2007, the U.S. imported ...

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