On How American Companies Started Offshoring White and Blue Collar Positions to Other Countries with Low Pay since the 1960's

This report analyses how American Companies started offshoring or moving white collar and blue collar positions to other countries with low pay since the 1960’s. Also, the purpose of this report is to highlight the advantages and disadvantages of offshoring jobs to countries with low pay. This report will analyze how the consumers, communities, and corporations are beneficiated and/or affected.

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:

• To identify what positions are offshored more often.
• How offshoring jobs affects and/or beneficiates the consumers.
• How offshoring jobs affects and/or beneficiates the communities.
• How offshoring jobs affects and/or beneficiates the corporations.

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.

Offshoring American jobs have positive and negative consequences to the American community. Some of those consequences of offshoring American jobs include Amer...

... middle of paper ...

...hored, individuals, families, and communities suffer the negative economic consequences due to limited job availability. Most people who work in these industry sectors are blue collars, who are not professional or academically qualified to work in other fields, as a result their job choices are limited, especially when the main industry in that community is to work in the stage of manufacturing. When there is massive unemployment within a single community the loss of manufacturing jobs can threaten consumers, creating other problems in the society that result in economic costs. Such problems may spiral into the loss of one's car or home, personal debt, and the lack of economical means to afford a child's education, thus continuing the cycle of economic poverty. These aforementioned consequences are indirect and important economic effects of offshoring American jobs.