Impact Of Outsourcing On The Economy Essay

Impact Of Outsourcing On The Economy Essay

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Outsourcing is obtaining goods or services from a foreign supplier in place of going in the country for these things. There are many debated effects of outsourcing on the economy, and there are several pros and cons to this practice. Even though there are many pros, the overall economy of America would be better off with minimal outsourcing.
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...


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...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.
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