Among the American society there is a controversy over the rising popularity of corporations internationally outsourcing American jobs. You may be asking yourself what is international outsourcing? It can be defined as a strategy corporations use to send jobs within their company overseas. These jobs originated in the corporations’ country prior to being outsourced to other countries. The reason for such actions can many times be attributed to the cheaper labor or for strategic business reasons.
Global Outsourcing and Job Loss Outsourcing has become a popular trend among United States companies within the last decade. American companies are feeling challenged to raise profits, lower prices, and put their products to market before the competition. International manufacturing is benefiting both consumers and producers in this regard. However, the question of whether or not offshoring is a positive or negative influence on the United States job recovery, in today’s unstable economy still remains. In this paper I will discuss the pros and cons of outsourcing in regards to manufacturing jobs and IT jobs within the computer industry.
Well-educated and highly trained foreign workers are inventive and productive. Expanded work forces increase business flexibility, allowing companies to quickly respond to changing demands. Larger labor forces also encourage specialization. Labor productivity rises as companies adjust to larger work forces and invest in employees.” (Bandow) Let us also remember that Americans also benefit from the cheap labor of illegal immigration. It is thanks to these immigrants that are willing to do the tasks that many Americans do not want to do (such as agricultural labor) that Americans can enjoy the produce of that labor for a cheaper price than would otherwise be achieved without the immigrants.
First, let’s take a look of the main advantages of multinational corporations that will offer: • The benefit for consumers: it can be easily notice that the larger the corporation, the better they are to lower the average prices and costs for its consumers. For example: some developed countries like Japan or Korea can offer cheaper car price than developing countries, the same with other technology industry like smart phone, and electronic. • Corporations will create jobs and wealth: after putting their money to invest to foreign markets; of course they will hire the local people to get the advantage from the low labor cost. Wealthy is likely to come to their resident soon
Easily transferred capital allows businesses and corporations to invest in overseas property to expand their operations. This also opens them up to cheaper labor forces in emerging markets (businessweek.com). Panos Mourdoukoutas (2011) further supports these claims with his article on Forbes.com. Mourdoukoutas explains that the good side of globalizations is about efficiencies and opportunities that these new open markets create. The technological advances with the internet and phone services allow businesses to communicate quickly and effectively with their sister companies and supplies which leads to more efficient operations.
With liberal trade restrictions and globalization, companies and economies around the world have become more financially intertwined. For the most part this has stimulated economic growth around the world, creating more affordable consumption opportunities. The being said, there still remains a big loophole in the tax system between countries in the global economy. For many multinationals including Apple, they have moved their most profitable subsidiaries overseas to reap the tax advantage unavailable in the United States. As this continues to occur, the United States remains to have the highest corporate taxes around the world of 35%.
Many Americans are used to getting the products they desire, at any cost. Trade with other countries is a necessity to the US because of the needs of the American people. Some examples of consumption could be wine, diamonds and gems, and vehicles. Another driving force in the global economy is cost of labor. Imagine the amount of money some companies would have to pay American workers to do the same work as some third world countries.
When most people think of jobs being sent overseas they think of factory workers or telephone operators, but the recent trend in the outsourcing of jobs has been higher paying jobs like accountants, computer programmers, or financial analysts. These jobs are considered white-collar jobs. In this election candidates will try to appeal to everyone who votes. Bl... ... middle of paper ... ...ing of jobs that Americans are qualified and trained to do. If a company were going to outsource jobs maybe a good policy solution would be to match, if not double the number of jobs in the states to that of the number of jobs being shipped away.
Exporting US Engineering Labor Overseas, an Ethical Perspective Introduction The recent trend of outsourcing white collar jobs overseas to countries such as India has angered many American Technology professionals. This is occurring specifically in areas such as computer software, chip design and technical support. This trend has contributed to the increasing difficulty many Americans, who are looking for technical jobs, are experiencing. The purpose of this paper is to determine whether this anti-outsourcing attitude has any moral basis and to discuss the conflict of interests involved. This trend has a huge number of stakeholders, impacting engineers working for US companies as well as the entire economies of the US and the nations who benefit from the practice.
This results in a lower cost to employers and an influx of workers. Whether legal or illegal, additional workers result in economic growth. Finally, globalization has facilitated human development through cultural diversity, broadening ideologies, and creating beneficial competition between nations. However, because the U.S. protects its citizens with labor laws and livable wages millions of manufacturing jobs are lost to inexpensive, overseas counterparts. While there are many benefits to fusing the world, globalization comes at a cost, the elimination of America’s middle class.