Outsourcing rather than major competitive threat has become a huge source of strategic competitive advantage amongst manufacturers. Manufacturers feel pressured to boost innovation and reduce delivery cost, so when resources needed to get the job done aren’t available nationally, companies begin to look globally. When a company is restricted from using a resource that allows them to compete globally they will lose to the competition, which in turn affects the U.S market and economy as a whole (Costello, Joel). ... ... middle of paper ... ...sourcing. PC Magazine Vol.
President Obama has proposed several tax measures aimed at encouraging American companies to bring jobs home. He laid out a vision for strengthening the US economy and by focusing on tax inequality and making the case for his economic leadership (Garcia, 2012). Also, in 2004, Senator Kerry attempted to reverse the outsourcing of U.S jobs by proposing a bill that will give tax incentives to American companies to keep jobs in the United States, close tax loopholes that require... ... middle of paper ... ... highest tax rate in the world. This needs to be changed. They need to lower the rate for companies that choose to stay here and hire here in America.
Corruption Around the World. International Monetary Fund. WEI, Shang-Jin (2001). Corruption and Globalization. Last accessed on 31 March 2005 at URL: http://www.brookings.edu/comm/policybriefs/pb79.pdf ZEKOS, Georgios I.
Retrieved October 30, 2004, from http://money.cnn.com/2004/01/23/news/companies/obscenity/index.htm. Peterson, Molly M. & Hess, David (2004, June 22). Indecency, Media Ownership Hitch A Ride On Defense Bill. Congress Daily. National Journal Group, Inc. p. 4, 2p.
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In my opinion, it has strongly contributed to America's massive downsizing phenomenon. Companies that have experienced financial setbacks and losses seem to relish the idea that they can downsize the workforce here in the states, move operations into places like Mexico, hire cheap labor, and export their product back to the states, while making bigger profits. The sad part about this is that it is true, and NAFTA is largely responsible for this type of downsizing. Is this ethical? That remains to be seen.
Web.  Schweikart, Larry, and Michael Allen. A Patriot's History of the United States: from Columbus's Great Discovery to the War on Terror. Reno, NV: Sentinel, 2004. Print.
What is the impact of such significant downsizing to the Information Technology field in general? For one thing, globalization has cast an entirely new light upon the way that Information Technology companies operate amidst a growing atmosphere of global competition. Every opportunity to cut costs and increase revenue brings a company that much closer to overpowering its industry rival. "There are good reasons…to be skeptical about whether easing the way money flits around the world has brought more good than harm" (Moberg 18). While the globalization of the Information Technology industry greatly depends upon a firm's competitive position in a particular country being significantly impacted by its position in other countries, it can be readily understood that global industry is not just a collection of domestic industries but rather a group of linked industries in which rivals compete against one another upon a worldwide basis.