Outsourcing and the US Labor Market
opinion Essay
1210 words
What are the best ways for businesses to maximize profits? Businesses in the U.S. have answered this question with a very simple answer: make products overseas. This business tactic of using labor services from a third party is known as international outsourcing (Brecher 996). Within U.S. borders, there are certain regulations and restrictions on many aspects of the manufacturing process (Stephanie para 2). However, production is cheaper if they are made countries where regulations are less strict (Wood 25; Stephanie para 1). Despite the profits made from this technique, it can have some repercussions on the U.S. economy and the environment of nations occupying those factories (Marquis 39; Ahmed 192; Zhang 776). This springs a debate to whether more concern should be held for the outcry of Americans to bring jobs back to the U.S. (Ahmed 192; Stephanie para1) or to the freedoms of the businesses and their right to seek a profit (Salanţă 270).
Both sides can agree that outsourcing can be desirable for a business do to the potential profit. It allows goods to be made cheaper, management to run smoother, and money to be made faster (Salanţă 270). Both sides can also agree, however, that U.S. jobs are lost as a result of outsourcing (Ahmed 192), as well as environmental damage being cause due to corporations taking advantage of loose environmental regulations (Marquis 39). Upon digging deeper into this debate, one can find that both sides present very convincing arguments.
In many cases outsourcing has proven to be beneficial for businesses. It can help a business’s management by allowing executives to focus on the core structure of the firm rather than every specific element. Production, manufacturing, or additional servic...
... middle of paper ...
...014.< http://eds.a.ebscohost.com.gatekeeper2. lindenwood.edu/ehost/detail?sid=ca8f1347-1e04-4d9c-aed3-f1dc97593a6d%40 sessionmgr4002&vid=5&hid=4208&bdata=JnNpdGU9ZWhvc3QtbGl2ZQ%3d%3d#db=nfh&AN=J0E317291521204>.
Wood, Joel. "The Effects Of Environmental Regulation On The Competitiveness Of US Manufacturing." Fraser Forum (2012): 25. Business Source Complete. Web. 6 Mar. 2014.< http://eds.a.ebscohost.com.gatekeeper2.lindenwood.edu/ehost/pdfviewer/ pdfviewer?sid=232efdbd-1043-415b-af6f-5a75b828a29a%40sessionmgr4003&vid= 5&hid=4111>.
Zhang, Ting. "International Outsourcing And Unemployment In A Minimum-Wage Economy." Review Of International Economics 19.4 (2011): 776-786. Business Source Premier. Web. 11 Mar. 2014.< http://eds.a.ebscohost.com.gatekeeper2.lindenwood.edu/ ehost/pdfviewer/pdfviewer?sid=b295036e-d1cf-4835-97be-785c1702a15c% 40sessionmgr4001&vid=3&hid=4208>.
In this essay, the author
- Explains that businesses in the u.s. make products overseas, using labor services from a third party, despite the profits made from this technique, it can have repercussions on the us economy and the environment.
- Opines that both sides agree that outsourcing can be desirable for a business do to the potential profit. however, u.s. jobs are lost due to outsourcing and corporations taking advantage of loose environmental regulations.
- Explains outsourcing has proven to be beneficial for businesses by allowing executives to focus on the core structure of the firm rather than every specific element. the toy company mattel inc. would serve as an example.
- Explains that countries such as india and china have relaxed labor and environmental laws, which may prove profitable for many businesses.
- Estimates that by 2015, 3.3 million u.s. service and manufacturing jobs will have been shipped overseas.
- Opines that businesses make a questionable risk in trusting suppliers, as they have limited control over the quality of outsourced products and services.
- Explains that some outsourced service workers may have limited international mobility or limited knowledge of customers’ activities. this can cause confusion between suppliers and corporations or services and customers.
- Explains that china's neglect of the environment has taken a toll over the years due to the mass of industries outsourcing to china.
- Opines that there are many prospects to weigh for both sides of the agreement when one questions whether or not u.s. businesses should outsource jobs to other countries.
- Proposes a tax reduction for american businesses that do not outsource labor, which would cut expenses to encourage businesses to keep labor in america while creating jobs and decreasing pollution emitted into china’s ecosystem.
- Cites ahmed, syud amer, thomas w. hertel, and terrie l. walmsley. "outsourcing and the us labour market." world economy 34.2 (2011): 192-222
- Describes brecher, chen, and zhiqi chen's views on unemployment of skilled and unsawed labor in an open economy.
- Explains that u.s. companies paid more taxes overseas. businessweek online (2009): 5.
- Cites marquis, chrisopher, zhang jianjun, and zhou yanhua. "regulatory uncertainty and corporate responses to environmental protection in china."
- Analyzes salanţă, irina, dan c. lungescu, and veronica m. pampa's "outsourcing: the benefits and the risks." managerial challenges of the contemporary society.
- Analyzes how outsourcing critics cite labor laws in other nations.
- Explains wood, joel, the effects of environmental regulation on the competitiveness of us manufacturing. fraser forum (2012): 25.
- Cites zhang, ting, "international outsourcing and unemployment in a minimum-wage economy." business source premier.
Related
- opinion
- analytical
- explanatory
- Labor in the United States and Outsourcingopinion essayOutsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.
In this essay, the author
- Explains that outsourcing emerged on the financial arena during the 1980s and has since been spreading. globalization provided a new component leading to the strengthening of resources, skill and labor specializations across the world.
- Explains that the concept of outsourcing has been a subject of debate between politicians and citizens of the united states.
- Explains that businesses have been able to extract a multitude of benefits through outsourcing which has in turn created employment opportunities along with it.
- Explains how alternative organizations began to source their services to countries like asia and china where staggering population makes the provision of low-cost labor more convenient. the native labor developed the best hostility for outsourcing.
- Opines that the controversy that was antecedently being won by the advocates of outsourcing has now taken a totally different twist.
- Opines that america should create intelligent use of scarce natural resources by producing extremely subtle product like airplanes and innovative software system systems instead of concentrating on the production of less advanced shoes and textiles.
- Argues that the benefits registered of outsourcing can become virtually non-existent and negligible once its disadvantages are contemplated.
- Opines that outsourcing will replace jobs lost during a dynamic and innovating economy like that possessed by usa. however, government is framing policies to slash grants being provided to such institutes.
- Argues that the major shortcomings from the projected economic models don't seem to be stuffed with a concrete and effectively managed finances recovery in terms of exploration of novel employment opportunities, stabilization of native market and relief providing efforts to the labor through outsourcing ventures.
- Concludes that outsourcing remains an issue of concern for our government as well as for the people of the united states.
1040 wordsRead More - The Impact of Outsourcinganalytical essayOutsourcing has only very recently become an issue in the United States, and as a result it has become a very popular political issue during campaigns for presidency. Outsourcing is the idea that a company will subcontract to a third party, usually outside of the US, for various parts of its business structure. An example of this and perhaps the largest source of outsourcing is call centers for tech support, where a company will subcontract to a third party and that party will build up the call center and hire the workers for it. Many people have been affected by outsourcing since it started being used widely in the 1980s, and most would argue that outsourcing is not a good business model, that while it not only negatively affects them, it affects the whole economy. While there are some unmistakable positives to outsourcing, I would argue that as a whole, the negatives far outweigh the positives and outsourcing is bad for the United States.
In this essay, the author
- Explains that outsourcing improves the quality of a company's product, and the credibility of the company behind that product. this is especially apparent when companies are looking for talent in the sciences or engineering.
- Analyzes the negatives of outsourcing, such as the displacement of workers or the loss of jobs, especially during a recession.
- Opines that outsourcing has a negative impact on the economy, and that governmental restrictions should be put in place to protect workers from being displaced.
- Explains that outsourcing has become a popular political issue during presidential campaigns. they argue that the negatives outweigh the positives and outsourcing is bad for the us.
- Argues that outsourcing results in a loss of skills and quality of product. they also point out the negative impact of outsourcing abroad.
- Analyzes the impact of foreign outsourcing on wage inequality in us manufacturing.
1771 wordsRead More - Exploring the Benefits of Outsourcinganalytical essayThe purview of this paper is designed to encompass the outsourcing of jobs in the manufacturing sector of the United States' economy. Beneficial and disadvantageous elements of globalization will be exposed within the respective boundaries inclusive to the outsourcing of U.S. industry jobs.
In this essay, the author
- Analyzes the benefits and disadvantages of outsourcing jobs in the manufacturing sector of the united states' economy.
- Argues that outsourcing is a highly polarizing and multifaceted issue for corporate entities and u.s. citizens alike.
- Explains buchholz's bringing the jobs home: how the left created the outsourcing crisis—and how we can fix it.
- Cites griswold, daniel t., and buss, dale. "economic benefits from foreign outsourcing."
2227 wordsRead More - Outsourcing and the US Economyanalytical essayOutsourcing – Don't Get Bangalored? As the world has gotten “smaller” in terms of trade, outsourcing has become a hot topic in much political and economic debate in the United States. An Associated Press-Ipsos poll in May 2004, found that 69 per cent of Americans thought that outsourcing hurts the US economy while only 17 per cent thought it helped . President Bush’s chief economic advisor Greg Mankiw has stated “outsourcing…is something that we should realize is probably a plus for the economy in the long run” . While John Kerry has emphasized, that he is going to stop the outsourcing of American job .
In this essay, the author
- Explains that outsourcing has become a hot topic in political and economic debate in the united states as the world has gotten "smaller" in terms of trade.
- Analyzes how a 2004 ap-ipsos poll found that 69 percent of americans thought outsourcing hurt the us economy while only 17 percent thought it helped.
- Points out jagdish bhagwati's paper "the muddles over outsourcing" and supports it with other mainstream economists' views on outsourcing.
- Outlines paul samuelson's paper "where ricardo and mill rebut and confirm arguments of mainstream economists supporting globalization" and introduces the theory of immiserizing growth.
- Explains that forrester estimates that outsourced us jobs will grow from about 400,000 in 2004 to 3.3 million by 2015 which seems quite significant.
- Opines that bhagwati's paper the muddles over outsourcing is essential to view outsourcing of services as a traditional good and treat it as just that.
- Analyzes how trade tends to create jobs in high-wage industries in which the us exports and reduce jobs.
- Explains that local diminishing returns give a bowed ppf, while global countries are too small to affect prices. trade then gives constant returns, which is seen by the linear consumption function.
- Analyzes how cathrine mann predicts a new wave of it related growth with outsourcing of software and it services. lael brainard and robert e. litan agree that outsourcing will benefit the us.
- Opines that not all economists agree with paul samuelson's argument that outsourcing can have negative consequences.
- Argues that the mainstream belief that all forms of free trade is beneficial, at least in the long run, is false.
- Explains that outsourcing may lead to losses formulated by samuelson and the theory of immiserizing growth developed by bhagwati.
- Argues that immiserizing growth suggests that gains from trade are not given. export biased growth can make a country worse off than it was before it engaged in trade.
- Explains that resource rich countries like iraq specializing in production of oil for export purposes could lead to a fall in its price and deterioration in terms of trade.
- Explains that a worse term of trade does not always equal immiserizing growth.
- Concludes that outsourcing can be beneficial to the us and this new kind of trade may generate even greater gains. china has the potential to turn the standard theory upside down.
- Analyzes how paul samuelson's "where ricardo and mill rebut and confirm arguments of mainstream economists supporting globalization" will be published in journal of economic perspectives.
- Opines that globalization of it services and white collar jobs: the next wave of productivity growth.
- Describes lael brainard and robert e. litan's "offshoring" service jobs: bane or boon – and what to do?"
- Analyzes p.a. black's "immiserizing trade: a theoretical note" from the south african journal of economics, june 2002.
2350 wordsRead More - The Effects of Outsourcing in Americaanalytical essay“It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy” (Taylor). This quote by Adam Smith, cited by Timothy Taylor, defines outsourcing as a task that can be done within a group, but is instead done by a third-party group for less money. While outsourcing service benefits American firms, studies show it takes jobs from middle-class Americans and adversely affects the American economy; however, other research proposes that outsourcing might actually benefit the American economy.
In this essay, the author
- Explains adam smith's definition of outsourcing as a task that can be done within groups, but is instead done by third parties for less money. while outsourcing service benefits american firms, it takes jobs from middle-class americans and adversely affects the american economy.
- Explains that outsourcing benefits american firms domestically and abroad, which is why outsourcing is so prevalent in today's world.
- Analyzes how outsourcing affects u.s. unemployment and the middle-class lifestyle because it takes service-producing jobs from americans.
- Argues that outsourcing negatively affects the u.s. economy and these negative effects are only increasing as time passes.
- Concludes that outsourcing benefits the u.s. economy by reducing wages and eliminating benefits that businesses usually have to provide to their american workers while still producing the same product.
- Opines that outsourcing benefits american firms, but shuns loyal workers for profit, while researchers argue whether it will sustain the u.s. economy.
- Analyzes how desai, mihir, and lamphier, gary, argue that outsourcing is bad for the u.s. economy.
1298 wordsRead More - Outsourcings Effect on Americaanalytical essayThe purpose of this paper is to analyze and come up with a reasonable conclusion on the effects of outsourcing in America. From overworking, to a decline in the manufacturing sector, a high wealth gap, and finally the contribution of corporate lobbying are prime examples of the by-product that were created by outsourcing. Although free trade is the root of the problem, outsourcing is the most prevalent issue that it has created. Since free trade is now a standard and cannot be eliminated we will look into how outsourcing, since it can still be controlled, has affected America.
In this essay, the author
- Explains the purpose of this paper is to analyze and come up with a reasonable conclusion on the effects of outsourcing in america. overworking, decline in manufacturing, high wealth gap, corporate lobbying are prime examples of the by-product that were created by outsourcing.
- Explains that 7.1 million jobs have been displaced since 1979, which is an astonishing high number.
- Analyzes how the manufacturing sector, once the focal point of the american dream, is being wiped out and transplanted at an astronomical rate.
- Concludes that outsourcing is making the top five percent richer while the poor and middle class are struggling to survive.
- Analyzes how pretax and after-tax profits are up, and how the costs are lowered by outsourcing and keeping the same production output and consumers.
- Analyzes how corporate lobbying is at an all-time high and is preventing real legislature that combats it to pass.
- Analyzes how the u.s. chamber of commerce is a lobbying group disguised to appear to be part of the united states government.
- Concludes outsourcing has harmed america for the worst and it cannot continue on longer without catastrophic economic consequences.
- Opines that corporate greed and brain-dead politics are selling out america.
- States that the 'us' chamber of commerce hosts seminars with chinese gov officials to teach american firms how to outsource.
- Explains industry week/iw 258.11 (2009): 25-31. business source premier.
- Analyzes gornick, janet c., "overworked, time poor, and abandoned by uncle sam." dissent 52.3 (2005): 65-69.
- Narrates how the u.s. chamber comes out against the senate outsourcing bill.
- Analyzes how top 'u.s.' corporations outsourced more than 2.4 million american jobs over the last decade.
- Explains kletzer, lori g., "globalization and job loss, from manufacturing to services." economic perspectives 29.5 (2005): 38-46.
- Explains the impact of globalization on u.s. wage inequality: implications for policy.
- Cites rick newman's book, "how the middle class is shrinking." business news and financial news - us news business, u.s.news & world report.
- Explains reynolds, jeremy, and academic search premier, "when too much is not enough: actual and preferred work hours in the united states and abroad."
- Explains that opensecrets.org: money in politics -- see who's giving & who’s getting.
- Explains that "wealth inequality." dollars & sense 251 (2004): 20. business source premier.
1981 wordsRead More - American Outsourcing Case Analysisanalytical essayCase Summary The American Outsourcing Case is a compilation of factual information for the purpose of provoking debates. The authors present both the pros and cons of outsourcing, and avoid inserting their personal bias. The case clearly defines outsourcing and then focuses on outlining its existence in China, Mexico, and India. The evolution and U.S. involvement in the Maquiladoras of Mexico is described first.
In this essay, the author
- Analyzes the american outsourcing case, a compilation of factual information for the purpose of provoking debates. s present both the pros and cons of outsourcing, and avoid inserting personal bias.
- Explains that manufacturing of automobiles, washers and dryers is often delegated to mexico. mexico's dependence on the u.s. economy is unhealthy.
- Explains that indian outsourcing is one of the best ways for cios to cut application development and maintenance costs and deal effectively with the peaks and valleys of software demands.
- Explains that china now almost rivals india as far as international it outsourcing. millions of toys made in china were recalled this past year after the discovery of high levels of lead.
- Explains that the philippines is a highly targeted area for outsourcing. they offer low prices, high-end services, and are attempting to make themselves marketable to other countries.
- Analyzes how the american outsourcing case was a great complement to what we are learning in class. the case focused on mexico, india, and china as they all bring something different to the global market.
- Cites gidwani, juliana, in offshore insights market report series 3.9 (2005): 1-18.
- Argues that ge's mexican operations are targeted at the blue collar workers, with cheap shipping costs and short travel time.
- Defines infrastructure as the interconnection of various structural elements to support an overall entity, such as an organization, city, or country. the term multinational corporations was used three times in the case.
- Opines that the philippines expects outsourcing growth to accelerate in 2008.
- Explains schniederjans, marc, and yeo, vivian. "india still top choice for offshoring."
1977 wordsRead More - Negative Impact Of Outsourcingexplanatory essayFor my topic I chose outsourcing. Outsourcing has positive and negative impacts on the global business world. When thinking about outsourcing there are quite a few aspects that have many sides. Outsourcing has been known all over the world. In reviewing outsourcing you must take into consideration every single detail that is involved into making outsourcing what it has become today. As you continue to read this paper you will learn how outsourcing has changed lives for better and for worse. Outsourcing has been a topic that has also made some quite skeptical. The question you might be wondering to answer is why outsourcing?
In this essay, the author
- Explains that outsourcing has positive and negative impacts on the global business world. outsourcing has changed lives for better and for worse.
- Explains the positive aspects of outsourcing, such as the ability to control capital costs, efficiency, and efficiency.
- Describes the negative impacts of outsourcing, such as the loss of control a ceo can have over the company's processes, the time involved to make changes, and the response to performance problems.
- Opines that outsourcing doesn't cross their mind as a topic that is important to the global business world. stress plays an important factor in making that happen.
- Opines that language interferes with outsourcing because somethings are misinterpreted or simply not understood correctly causing a job to be done incorrectly.
- Explains that the loss of control that can come with quality with a business, and the responses involved in that happens to work for the union can become enraged.
- Explains that there can be controversial issues that arise in the outsourcing world. for instance, maintenance and engineering departments are worried about losing their jobs to someone else.
- Explains that outsourcing can continue to grow since it has been beneficial in resolving the lack of employees at hand. it can also save companies money because it is cost efficient and most corporations are the first to spot that key aspect.
1030 wordsRead More - Outsourcing American Jobsexplanatory essayOutsourcing American Jobs Outsourcing, no word in today's workforce is so loved or hated. Depending on who you are it is the greatest thing ever or an evil act by money hungry businesses at the expense of American workers. But what is the truth? Is it good? Is it bad?
In this essay, the author
- Explains that president bush and the current administration are pushing for more and more government jobs to be outsourced. it is a key candidate for outsourcing.
- Opines that companies going offshore to outsource it need to learn how to talk about this increasingly sensitive subject.
- Explains that outsourcing is an evil act by money-hungry businesses at the expense of american workers. it can be as simple as paying a company to paint your building.
- Explains that outsourcing is a political buzz word in this election year. senator kerry supports tax breaks for companies to keep jobs in the u.s.
1629 wordsRead More - Outsourcing as a factor in the United States recessionanalytical essayJim is a upstanding, hard working, American computer programmer who recently lost his job to a man who doesn’t provide the correct code or patches for the computer programs he builds. This man is living in a far off country providing money that doesn’t benefit Jim or America, now Jim has a nice spot in the unemployment line. This is not how any good employee should be treated, but now many companies are dropping their good employees for cheaper foreign employees. Recent outsourcing is factor in the recent downturn in the U.S. economy.
In this essay, the author
- Argues that u.s. lawmakers need to be more welcoming to large international businesses that will help to restart the job market, but instead focus on small start-up businesses.
- Analyzes how the unbalanced nature of outsourcing has caused a lessening of jobs and the loss of necessary revenue that the u.s. desperately needed.
- Analyzes the issue issues in science and technology 26.3 (2010): 91+.
- Analyzes the opposing viewpoints in context from "obama's high-tech labor lies."
- Explains that outsourcing is a complex and multifaceted subject that involves companies purchasing parts or labor from another company rather than maintaining fewer employees.
660 wordsRead More