1.) Do you agree with the opinion of The Council of Economic Advisor’s claim that “When a good or service is produced at lower cost in another country, it makes sense to import it rather than produce it domestically?” Offshoring, the practice of basing some of a company 's processes or services overseas has its advantages as well as its disadvantages, as most business decisions do. It is the weighing of those two leverages that make the debate of offshoring such a conflict. For starters, offshoring allows companies to stream their productions globally. With this, companies can practice their supplier power and then begin to lower cost of goods to increase the demand, due to the lower rate in which they could produce overseas. This investment also acquires new customers and even puts the companies into new market opportunities. On the other hand, however it creates the issue that may damage the company’s image. …show more content…
These companies view offshoring as the most efficient business strategy. Fewer regulations in other countries can make it less expensive for American factories to operate, but environmental damage and labor abuses that make the news can tarnish the image of companies involved there. Consumers in the past have organized boycotts against companies that use child labor or sweatshops to produce clothing and shoes. This then causes lost in consumers as oppose to the original intent of drawing in more. In response, companies such as Nike and Dell have established codes of conduct for their suppliers (Myers.2015). Such codes can help improve the image of companies that use
But First, Training Foreign Replacements” reveal the importance of the article to an international marketer. Outsourcing and offshoring prove to be the few topics one can learn in this article. An international marketer gains a better understanding of outsourcing and offshoring by recognizing the effects on the company, business, and economy. An important aspect of an international marketer’s career is to assess the market from a global perspective. An international marketer needs to know whether a company is outsourcing it’s employees incase they do not and need to market and appeal to potential employees for the company. An international marketer needs to understand the effects and how the topics outsourcing and offshoring work to gain a better grasp the company or business as a
In today’s world, increasing big companies open factories in developing countries but many people said it is unethical and the factories are sweatshops. Most of the sweatshops were opened in east Asia and third-world countries and regions. The companies open the sweatshops in order to get more benefits is a kind of very irresponsible behavior. For example, Apple's factories in China are not good and unethical. Audit finds
Globalisation is a growing phenomenon that is the result of various developments in the global environment, each of which merits an individual analysis of its social impacts. For the purpose of this analysis, the focus will be placed upon arguably its most controversial aspect, offshore outsourcing. Offshore outsourcing, or offshoring, is becoming an increasingly common business practice as a result of a combination of the recent technological advancements in the areas of transportation and communication, and the increased competitiveness of the business world. From the perspective of firms, tapping into cheap labor from less developed countries is a very logical business decision to reduce costs and maximize profits. This has not only motivated businesses to engage in offshoring, it has sometimes been critical to their survival in fiercely competitive environments. Before making judgments regarding the righteousness of offshoring from different perspectives, its impact on stakeholders must first be evaluated.
Offshoring American jobs have positive and negative consequences to the American community. Some of those consequences of offshoring American jobs include Amer...
In China, Kelsey Timmerman spent time with a couple who worked at the Teva factory, traveled to the countryside to meet the couple’s son, insert name, who hasn’t seen his parents in three years due to his parents working long hours and it being expensive to take a train ride. In the US, the author visited one of a few clothing factories in the US to talk to the workers about his shorts, and the decrease of American garment factories. Timmerman wants the consumer to be more engaged and more thoughtful when mindlessly buying clothes. By researching how well the brands you want to buy from monitor their factories and what their code of ethics details, you can make a sound decision on if this is where you would want to buy your clothes. The author writes about brands that improve employers lives like SoleRebels, a shoe company who employs workers and gives them health insurance, school funds for their children, and six months of maternity leave. Brands like soleRebels that give workers benefits most factory workers have never even heard of help improve the lives of garment workers and future generations. From reading this book, Timmerman wants us to be more educated about the lives of garment workers, bridge the gap between consumers and manufacturers, and be a more engaged and mindful consumer when purchasing our
Recently outsourcing has been in the news, especially during political election years. It seems to be a phenomenon that is causing much concern among the population. But exactly how is outsourcing effecting both workers and businesses? And is it as big of a problem as politicians describe?
For advocates of global business, the hope is that outsourcing will help lift the United State’s economic growth and development by lowering the input cost of services (i.e. labor and materials) and by opening new markets abroad. Mainstream economists believe that outsourcing will have ...
Academic Consortium on International Trade (2000) Letter to Presidents of Universities and Colleges. Available at: http://www.spp.umich.edu/rsie/acit/ [Accessed 1 April 2014]
When people think of a sweatshop, images of people assembling items in a hot and crowded factory somewhere in a “Third World” country tend to come to mind. However, the first few sweatshops were located in both New York and England, becoming established in the late 1800’s. The term “sweatshop” originated from the term “sweating”, which described the contractual agreements between workers and designers to produce clothing. In these workshops, there was a “sweater”, an individual who monitored garment making (“Origins Of Sweatshops”, 2017). The term sweatshop is more so currently used to describe the working conditions rather than the type of workplace itself. Even back then, these workplaces were unsanitary, were sources of safety hazards and extremely crowded. Throughout the years, poor people and immigrants filled up the sweatshops in desperate search for work. This eventually spread beyond the United States and U.K., and became a commonplace practice in developing countries ruled by dictators. With this spread quickly came the employment of child workers, especially in places such as Indonesia, and India. Like the adults, they are subject to treatment that violates their human rights. They are left without protection from any other adults, making them more susceptible to abuse. Despite this, major corporations and brands such as Wal-Mart, Adidas, Aldo, Victoria’s Secret, Urban Outfitters and so on use sweatshops for affordable labor. One of the more prominent cases is the incident involving Kathy Lee Gifford and Wal-Mart, in which both Gifford and Wal-Mart “suffered as a result of the negative press surrounding the manufacturing of Gifford’s clothing line distributed by Wal-Mart” (Radin & Calkins). Gifford’s clothing was produced in a factory in Honduras, where female workers constantly suffered “cruel and inhumane treatment” (Radin &
“Sweatshops Are the Norm in the Global Apparel Industry. We’re Standing up to Change That.” International Labor Rights Forum. N.p., n.d. Web. 6 Feb. 2014. .
Corporations in the United States have proved time and time again that they are all about profit and not about what is good for America. One example of this is the fact that many corporations have factories in other countries, or buy from other corporations that do. Nike (an athletic shoe and clothing company) produces most of their shoes and apparel in factories in other countries, including Japan, South Korea, Indonesia, China, Vietnam and Malaysia. According to Nike’s factory disclosure list released May 2011, only 49 of it’s over 700 factories are located in the U.S. (Nike, Inc.) This means that thousands of jobs that could be filled by needy Americans are instead being filled by workers in other countries. This reason that Nike and other corporations outsource is very simple, it is very cheap to do so. In an excerpt from Jeffrey St. Clair's book “Born Under a Bad Sky” the author describes the vast differences between Nike’s production costs and retail prices. “In Vietnam, it costs Nike only $1.50 to manufactu...
Many people in our society today are constantly asking, "Why do sweatshops exist?" The answer to this question is that companies like Nike and Wal-Mart use sweatshops to produce their goods for a much cheaper rate, to reduce the cost of their products. The problem with sweatshops is that the workers are subject to hard work in often times poor conditions for minimal pay. But although many people may condemn sweatshops, there are some advantages that many people overlook when arguing against sweatshops and their practices.
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.
...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.
People need to get educated about the great impact that offshore outsourcing has on an economy. The global economy has started to thrive and offshore outsourcing has profited the consumers as companies want to cut costs and competition, which is why I support offshore outsourcing jobs to foreign countries. What does it mean to offshore outsource? Let’s first start by explaining what outsourcing means. The basic meaning of outsourcing is to obtain goods or services from an outside source.