The obvious pro of outsourcing is the lower cost of production and labor. Since some United States businesses are going overseas for products, the cost of that product is greatly reduced. In the United States the government monitors how much employees get paid, and the U.S has even set a minimum wage of $7.25 for one hour of labor. In other countries their economies aren 't monitored like this, so their employees don 't get fair wages like here in the U.S. In China for example the minimum wage in most major cities is 1,600 yuan, or $239 USD. This number was after minimum wage was almost doubled, and it is still exponentially lower than the United States Minimum wage equivalent. Since the workers are barely getting paid it makes these products much cheaper to buy. This is a pro for the Unites States, but many consider this to be a severe con in the less fortunate countries. Outsourcing promotes the sad practice of underpaying workers in countries like China and India.
Even though cost is reduced through outsourcing, there are many things wrong with outsourcing that are bad for the country 's economy. The quality of products sold are very low because they are made in mass production, and made as cheaply as possible in order to make more money. This has caused more and more people to become dissatisfied with the market today. In What 's Wrong With Outsourcing?, an eBook by Ernie Zibert, Ziber...
... middle of paper ...
...it must be considered.
With increased dependency on obtaining goods and services through outsourcing, the United States has lost its competitive drive against other countries. There is little motivation to become the most technologically advanced or innovative. There is no need to be the most educated and advanced country anymore since it is so easy to use other countries progress. This is a shift from what the nation 's ideals used to be. The United States used to strive to be number one in all aspects, but outsourcing has made the nation accept being dependent on bigger powers. Later on in the future this may cause dire consequences for America.
In order to help the United States economy outsourcing must be minimized as much as possible. Focus needs to return to American made industries, as this is the best financial decision in the long run.
Word Count: 1328
Need Writing Help?
Get feedback on grammar, clarity, concision and logic instantly.Check your paper »
- It is difficult to determine whether offshore outsourcing has a positive or negative effect on the U.S. economy. It may actually depend on which perspective you take on it. As stated by Hira and Hira (2005), outsourcing in the services sector is a major shift in how the economy operates and will have serious impacts, both positive and negative, on the trajectory of economic growth, distribution of income and the workforce. However, there are many factors to take into account when considering globalization.... [tags: Business Management, Globalization]
551 words (1.6 pages)
- One in every nine American jobs is vulnerable to becoming outsourced. That adds up to over 14 million jobs in total.(Hira 2). The guarantee of protection from the approaching economic turmoil is not certain. According to the Merriam-Webster, outsourcing may be described as obtaining goods or services from an outside or foreign supplier. The origins of outsourcing can be traced far back as the first Industrial Revolution, when business moguls began to seek out new methods of increasing revenue while minimizing expenditures.... [tags: protection, economy, methods, profit]
729 words (2.1 pages)
- The practice of outsourcing jobs is not a new concept. People have been outsourcing jobs for decades. Some people even offshore outsource jobs. There are many opinions to offshore outsourcing based on how it influences the economy. Some people are in favor of outsourcing jobs and some people are against outsourcing jobs. People need to get educated about the great impacts that offshore outsourcing does to 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.... [tags: Outsourcing, Offshoring]
1873 words (5.4 pages)
- I. Outsourcing As Detrimental The U.S. economy has seen many hardships within the last decade. The economy has suffered from a recession that is still threatening to cripple some Americans and unemployment has been at an all time high. People have lost homes and jobs and many businesses have gone bankrupt simply trying to survive. However, in the midst of this economic crisis some companies have managed to survive. Many companies, approximately 36% of them, have found a way to avoid economic collapse by cutting costs (Job Outsourcing Statistics, 2014).... [tags: Policy Responses to Outsourcing]
2496 words (7.1 pages)
- The Truth behind Outsourcing Outsourcing is when a company or business decides to contract part of their services that they do not do well to an outside company. There is two types of outsourcing offshoring and nearshoring. Offshoring is where a company outsources abroad and, nearshoring is outsourcing within the home country. The reasons that a company decides to outsource varies from company to company but, the most common ones are cost reduction, increasing globalization, growth , tax incentives, government support and access to new markets.... [tags: Economics, Inflation, Outsourcing, Unemployment]
1171 words (3.3 pages)
- Pro Outsourcing Ingrid A. Moore Shorter University Abstract Pro outsourcing is the stance on the Ethical topic dilemmas associated with offshoring Are very plentiful. This report will support the numerous aspects of outsourcing. The Information will depict the ethical side, quality of service portion, work environment, Security concerns, cultural differences and the monetary aspect of outsourcing of this topic. Even though the defense will be pro outsourcing, showing both positive and Negative helps to understand the entire picture that companies have to face.... [tags: Outsourcing, Offshoring]
1164 words (3.3 pages)
- Globalization, or outsourcing, has been a hindrance on the American economy for the better part of twenty years. Outsourcing has cost millions of jobs in the United States over the past twenty years, and continues to create problems for the families in the United States. Outsourcing is a hindrance on the American economy, and will create a lasting effect on the college graduates and younger children of today. While outsourcing is bad for the American economy, it has been a growth factor for the economies of the countries such as India.... [tags: Globalization, American Economy]
905 words (2.6 pages)
- Outsourcing 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.... [tags: Business Management, Globalization]
1771 words (5.1 pages)
- In recent years off shoring of high paying service jobs to counties such as India have received a lot of media attention. What are the long and short-term effects of these changes in terms of employment, income distribution and economic growth. Is the outsourcing of services a different phenomenon than simply importing steel. Economic theory and past history point to the fact the trade provides net economic gains but if it also redistributes wealth, affects worker employment the short run and wages in the long run.... [tags: Outsourcing, Offshoring, Free Trade]
1193 words (3.4 pages)
- Abstract This paper will discuss offshore outsourcing and the effects it has on the American worker in a technology environment. We begin with the scope of the problem and how it has changed the economy for better and for worst. Various figures representing miscellaneous data about off shoring will be represented. The topics include the background and nature of offshore outsourcing, reasons for outsourcing, why trading promotes gain, current economic standing from outsourcing, and finally how outsourcing affects wages and employment.... [tags: Business Management, Globalization]
1704 words (4.9 pages)