Other countries that are suitable to perform the jobs needed may demand less money to finish the jobs. The main purpose of this paper is to explain why businesses should outsource to other countries that can do the work they need at a cheaper cost. Many Americans blame outsourcing for the current unemployment rates, even though the amount of Americans on financial assistance programs that are currently unemployed and are not looking for a job is high. This paper is intended for those that blame outsourcing on the unemployment rates and for American businesses that want to provide quality goods at a reasonable cost for American consumers. This paper will inform the audience on the benefits of why businesses should outsource.
(Greene, 2006) It's also believed that if the US continues to trade freely with the overseas countries then the powerful drag of their far lower wages will begin dragging down American's average wages. (Greene, 2006) Economist has found that tax cuts offered to large manufactures have caused productivity to go up. The manufactures are actually given tax breaks to be able to purchase more machinery to do the jobs and therefore fewer laborers are needed, causing a large number of workers to be displaced. The tax act that was initiated by Bush administration for big businesses was the "bonus depreciation". Under this act the more the companies spend on equipment the less the tax they have to pay.
Gene Marks, does it becaus... ... middle of paper ... ...m by taking away jobs from our communities it is supposed to help us in the long run. Production workers in the United States want more money paid to them than what company owners want to pay. This forces owners to send work overseas for cheaper production costs, which has good and bad sides. The real question however, remains unanswered as not whether or not outsourcing is good or bad. The real question remains, when we outsource jobs to foreign countries are we selling more than just our jobs to other countries?
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.
If we could import fewer items and produce them locally instead, we could reduce the amount of capital that is mo... ... middle of paper ... ...tries where low labor costs give them an advantage over other locations. Because minimum wage is so relatively high in the United States, the costs associated with making things like clothing, electronics, and toys would skyrocket if they were created here. In turn, the price that American consumers pay for them would go up and fewer people would be able to afford them—lowering both the economy and the standard of living for millions of Americans. So what can we do? Buying American-made products would likely help with the immediate recession by creating more jobs.
The major argument against globalization is that if you take money and spread it across other countries, in efforts to gain larger business control there will be a reduction of profit brought back into the country. The means by which the business achieves its success brings into account morality issues that would not be allowed in the US such a child sweat shops being used for garment production. Another aspect of outsourcing is a job loss for many Americans. Yet companies go overseas because they cannot survive paying the wages of American salaries. However with the unemployment rates going up for the middle class continuing outsourcing will only continue to escalate the situation.
One management problem that is causing outsourcing is that companies are looking for ways to cut cost tremendously in labor and manufacturing. Developing countries such as India are now taking a lot of American jobs. American companies are under pressure to reduce costs, and foreigners can do a lot of high-tech jobs more cheaply than they can be done here." That's why a lot of Americans are losing their jobs to the foreigners like the people of India and China. People in India are paid 1/10 of what employees in America get paid for doing the same job because the cost of living is a lot lower in India and other developing countries.
If the US closes off borders to foreign trade, manufacturing companies would feel a financial strain, causing potential job loss. Manufacturing companies in the US rely on profits from selling products in foreign markets and on many foreign goods to assemble those products. If businesses are not able to import their needed materials, then they would not be able to produce the products, both wanted and needed by both Americans and foreign buyers. Job loss would be inevitable and lead to many of the same problems seen today but on a grander scale. Job loss, homes in foreclosure, and the people who still have jobs would be living from paycheck to paycheck.
Some of these factors can weigh more or less to form a good econom... ... middle of paper ... ...market means that you pay less for almost everything you buy. This has cost some American jobs, and we have to work harder at creating new and better ones” (Dobbs). Works Cited Hira, Ron; Dobbs, Anil; Lou (2008). Outsourcing America: The True Cost of Shipping Jobs Overseas and What Can Be Done About It. AMACOM Books.
The main reason Americans who work full-time may live in poverty is because of how they spend their money. Minimum wages are fine the way they are and should not be raised. Raising the minimum wage would increase the cost of doing business, which would have a negative effect on the still-fragile economy. The unemployment rate in America is 6.7 percent, which translates to eleven million Americans looking for jobs. With a hike in the minimum wage it would be harder for businesses to hire new employees or even keep the ones they already have.