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Effect of outsourcing
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Is outsourcing affecting Americans
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Many people have mixed thoughts and feelings about the principle of
outsourcing being good in the U.S. and host countries. This brings up the
idea, should the U.S. continue with minimal regulation if there are no issues?
Should one think to keep minimal regulations or actually reform to stricter
regulations? How does outsourcing effect the U.S.? If taken in perspective,
outsourcing effects should be analyzed. Cheaper products for U.S. citizens,
profits and revenues, and economic gains might be ideal for some however,
many look over the negative effects concerning the same ideals. In fact,
influential articles by Tom Hayden and Charles Kernaghan, "Pennies an Hour
and No Way Up", Nicholas Kristof and Sheryl WuDunn's, "Two Cheers for
Sweatshops", complicate matters further when they write that outsourcing affects
the U.S. in a negative perspective. As they argue negative issues about cheap
labor, loss of jobs in the U.S., working conditions, economic markets,
enviromental issues, and huge profit corporations, more regulations need to be
enforced. Economic disaster will result if outsourcing continues on the same path
with minimal regulations. Old practices need to be addressed and the
government needs to step up for more strict regulations.
While cheap products and labor for the U.S. companies may be a
positive, one must take in perspective the negatives of unsafe working conditions
because of inhumane overseas labor. According to Kristof and WuDunn, "Some
managers are brutal in the way they house workers in firetraps, expose children
to dangerous chemicals, deny bathroom breaks, demand sexual favors,
force people to work double shifts or dismiss anyone who tries to organize a
union."(1...
... middle of paper ...
...d bring the pollution down and protect the
enviroment.
With all the arguments and facts, the essay should give you a boarder
outlook on outsourcing and the minimal regulations. Although cheaper products
for U.S. citizens, profits and revenues, and economic gains might be ideal for
some, outsourcing still has a lot of negative issues that outweigh the good.
Disaster is inevitable if the U.S. continues on its current outsourcing path. The
issues and arguments by Tom Hayden, Charles Kernaghan, Nicholas Kristof,
and Sheryl WuDunn of cheap labor, lost of jobs in the U.S., unsafe working
conditions, economic markets, enviromental pollution issues, and huge profit
corporations need to be addressed. The government needs to enforce more
strict regulations in order to avoid disaster. The only way this can happen is
if you the reader take a stand on it!
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.
On the other hand, it is viewed as a horrific way to abuse individuals in different countries by paying them tremendously trifling wages, working in strident conditions, and overall being treated inadequately by the factory owners. United States corporations exploit different countries around the world such as, China, Indonesia, Mexico and
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...
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.
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.
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.
First, we will look at an example of how consumers inadvertently continue to assist companies with outsourcing. The problem consumers do not realize is that by paying for some name brand products, we are allowing outsourcing to take place. It is all in the hands of the consumers to change this. Typically consumers buy what they know, out of habit. It is up to consumers to read labels when buying a product and find a product made in the US. The jobs we would save by doing so could be our own. A specific example of consumers furthering ou...
In this paper, I will discuss the ethics of outsourcing manufacturing from my local community to a developing country. I will view this debate through three different frameworks: Utilitarianism, Pragmatism, and White’s biblical principles. I will also conclude my final view on outsourcing and the benefits of using a framework for making ethical decisions.
One rhetorical device used in the first article I read was analogy when outsourcing is being compared. “Outsourcing is either the smartest business practice since the development of the assembly line, allowing companies to shave double-digit percentage points off their bottom lines, or the most repugnant, directly responsible for exporting good-paying U.S. jobs overseas.” (Kibbe, 2004) This statement is a misleading comparison that is too vague because this statement already has the reader with the idea that there are beliefs that this idea of outsourcing is either good or bad and not somewhere in the middle. By reading further into the article, many people believe that outsourcing means that jobs will be lost in the United States and research shows that this is simply not true.
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.
There has been increased the outcry by international labor organizations accusing multinational companies of foul play when dealing with their workers. Many multinational companies, in a bid, to reduce operation costs and costs of production, end up suppressing their clueless workers. Some multinational companies have gone to the extent on having their central productions being done in low-income earning companies where they would not have many responsibilities to bear for the workers. Coca-Cola, however, has received widespread criticism for its mistreatment of workers and the way it has...
[7] Daniel Pink, The New Face of the Silicon Age, 2004, Wired Magazine, 28 May 2004,
...orking environments for their factory employees. Even with international groups and organizations keeping a constant watch on companies who outsource work to impoverished countries, there is often little that can be done to control these companies. Lack of local enforcement and overlooked international law makes it easy for money-hungry companies to get away with morally wrong behavior. By bringing attention to these types of situations and not supporting companies who do not treat their workers fairly, executives will be hit where it hurts them the most, their pockets. When their profits decrease, they will be forced to look for alternatives to manufacture their products.
First of all globalization has led to exploitation of labor. We can’t ignore the fact that ethical aspects of international business deserve special attention. Corruption and engaging in illegal practice to make greater profit is a source of continuing controversy. Sometimes companies go international and move their production to foreign countries so they could employ workers for long hours, at low wages and in poor working conditions (sweat shops). They are also using child labor, the employment of children to a full time work that can be otherwise done by adults all that so they could get out of their responsibility towards their workers by avoiding paying them national insurance …When these multinational firms go abroad they forget all about principles and about human beings and their rights, according to Kent, J., Kinetz, E. & Whehrfritz, G. (2008/March24). Newsweek. Bottom of the barrel. “The dark side of globalization: a vast work force trapped in conditions that verge on slavery”, David, P. Falling of The Edge, Travels through the Dark Heart of Globalization..Nov 2008. (p62) also agrees with them when he explained his concerns about Chinese and Indians t...
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