The Importance Of Outsourcing In America

Improved Essays
Outsourcing in America is a current problem that is occurring more and more very day. Outsourcing may make the product cheaper but, that doesn’t make anything better when the factory workers are laid off because all of the work they were doing got shipped overseas. Outsourcing is alright to a point but there needs to be limits on how much each company relies on other countries for products. There needs to be a balance to where there is enough production in the U.S. so Americans can still survive. Outsourcing is starting to get out of hand in the U.S. and something needs to happen to where there are still jobs in the U.S. for the people. In my opinion, outsourcing is wrong because it takes jobs. It is affecting the economy dramatically. Outsourcing …show more content…
Outsourcing is just an easy way for big corporations to make billions, while they spend little to get the products they sell. Companies say they outsource to help the less fortunate, but you can’t help the less fortunate when they lost the job they had because the company they worked for went out of business. This creates an unfair competition for the factories in the U.S. because they can’t drop the prices and wages of the employees as low as the third world countries. That are paying their workers pennies a day to do the same work Americans are doing for no less than minimum wage which average in the U.S. is $7.25 an hour. Outsourcing is honestly doing the exact opposite for what this country needs. It takes American jobs and sends them overseas to cheap paying third world countries. With the loss of jobs workers aren’t safe from being laid off. Whether a worker has only been working at a factory for few days or several years their job can still be in jeopardy. The effects of these layoffs continue to affect workers for years on end. Outsourcing is one of the main suppliers of unemployment in America and will continue to take jobs until there are nearly no more American factory jobs and no more American made

Related Documents

  • Improved Essays

    ‘The death of distance: Outsourcing, white collar exodus’ film involves many companies moving their call centers and contracts to foreign countries, this is called outsourcing. They particularly look at areas in southern Asia, for example countries like India, Malaysia, etc. This is a lot cheaper for big companies because it allows them to cut their wage salary lower because the quality of living is lower in LEDC’S (less economically developed countries). United States of America is a MEDC (more economically developed country), this means if a lot of companies are outsourcing to south Asian countries this can have a negative impact on globalization of the United States. This is due to outsourcing, and this is because of major companies setting up their call centers in other countries than USA.…

    • 954 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    From the business point of view it is important to understand that outsourcing is part of globalization, and it benefits the company’s efficiency and it saves money in labor. Many Americans believe that outsourcings hurt Americans economy and are against the idea of taking Americans jobs to other countries. Bryson, a global economist for Wells Fargo said: “When jobs move from a factory in the South to one in Guatemala or China, it certainly has a negative impact on that community in the short run… But in the long run it makes things more efficient." (Hargreaves, 2012)…

    • 1324 Words
    • 5 Pages
    Great Essays
  • Improved Essays

    Outsourcing has given companies a way to reduce the cost of operations, labor wages and also taking advantage of the reduce corporate tax rates(). For example a US company contracting employees from India to handle services can pay the employee a fraction of the price that they would pay an employee based out of the US. Another reason why companies have elected to outsource is because it has given them the opportunity access and hire world talent to handle their services; if a company is not an expert with a specific area such as IT and human resources (HR) they can contract an outside company to handle these services at a reduced rate. These key components listed leads to another main reason which is flexibility.…

    • 1175 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Countries like India and China are ahead of the United States in education and could be more qualified for the jobs Americans are trying to obtain with the degrees earned in the United States. Also, outsourcing to foreign countries can save business thousands, if not millions of dollars. Jobs can be outsourced and the American employee will be left unemployed. Alan Blinder says, “ You can’t hammer a nail over the Internet.” (Page 396)…

    • 1153 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    In order to keep profits high, companies are outsourcing jobs to other countries such as Japan and China. The reason being is large companies are always…

    • 1064 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Murphy compares outsourcing to a technological improvement that puts laborers out of work. A company has to invest in labor-cost reducing machinery to compete with China or the company will eventually cease to exist. Murphy also points out the offshore outsourcing gives countries the ability to specialize and achieve maximum efficiency and profitability as well as allowing businesses to serve new markets. The benefits of outsourcing are numerous and far outweigh the negative consequences.…

    • 1112 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    The globalization in modern America has effect in every one’s life especially the minority groups. Because of these globalization corporations had hard workers like me lay off from job without offering any benefits so they can make more profit by paying low wages to workers in India, Indonesia or any other third world countries. Conclusion After all the studies and researches has been done throughout the centuries, we still living in the world of struggle for comfortable life.…

    • 286 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    Large companies lose interest in domestic labor mainly because of taxes, benefits, and workers’ skill. The Government is continuity raising income taxes for both the employees and employers. Also, manufacture companies have grown exhausted because they have to carry many burdens other than wages and taxes such as insurances for workers and their dependences, unemployment insurance, or 401k match; while they can the same productivity and quality hiring cheaper labor overseas. As a result, manufacture companies see that they are paying more for labor in America than other countries, and that greatly affects their company’s revenue. However, if American workers can offer better skills and productivity, which makes the same or better revenue for their employers, manufacture companies would definitely rethink about foreign labor.…

    • 1104 Words
    • 5 Pages
    Improved Essays
  • Decent Essays

    If U.S. businesses are attempting to reduce costs by substituting machinery for labor or by using foreign labor to produce their products. This would affect American consumer by causing the product the consumers are buying to cost less and there would have been a large amount of the products to meet their demands. Using machines and individuals outside of the country for labor can affect the American workers by causing a large amount of individual to be lay off for their jobs. Also it would be hard for those who are skill in low wage work to be able to find a company that would hirer them. It would also be hard for the workers to be able to feed and take care of their families.…

    • 178 Words
    • 1 Pages
    Decent Essays
  • Great Essays

    Identify the problem While companies have been outsourcing various activities for centuries, in recent decades, the increased growth of products and services that businesses have moved offshore has not only contributed to increased global economic growth and prosperity but also has faced much controversy and debate while Americans today attempt to protect the domestic business against offshoring. The overall problem includes transportation costs, disruption in innovation and productivity, reduction of quality of products and services, job displacement, and more importantly the loss of 3.3 million domestic jobs (Sao & Gupta, 2013). From an ethical standpoint, Kantian ethics states that people should never treat other as a “means to end, but…

    • 2963 Words
    • 12 Pages
    Great Essays
  • Improved Essays

    Outsourcing helps keep the cost of production low by getting cheaper imported goods or human resources in developing countries such as China, hence it help the everyday life of low-income customers. However, moving potential jobs to another country and destroying small American companies hurts the U.S. economy. It also leads lower wages and replaces those who working in American manufacturers with non-skilled retail labor. 
For example, Five Rivers Electronics which owned TV manufacture in America was severely attacked by Chinese imports. 7.…

    • 742 Words
    • 3 Pages
    Improved Essays
  • Superior Essays

    Every year the United States imports millions of goods made in foreign countries and has the goods shipped to stores all over America. The goods imported range from apparel all the way to electronics from factories located in places such as Bangladesh and India. Many apparel companies are sending their manufacturing overseas because it is less expensive for them to have it made in a third world country and shipped to the United States than to have it made in the United States to begin with. A majority of all manufacturing facilities are located in low economical and poorly educated countries and are commonly considered low wage companies. In low wage manufacturing companies there are flaws, such as long hours and unsafe working conditions.…

    • 1743 Words
    • 7 Pages
    Superior Essays
  • Improved Essays

    Outsourcing grew out of manufacturers’ concern to lower costs of production. In order to gain a competitive edge in the global economy, American business owners looked towards cheap labor offered overseas. Ultimately outsourcing led to more jobs being available for foreigners while American citizens were suffering. Outsourcing enables American businesses to become more profitable through increasing revenue. It has helped the country gain global recognition for its stable economy.…

    • 774 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    Ikea Outsourcing Essay

    • 850 Words
    • 4 Pages

    Outsourcing, a process of hiring another individual or company, either domestically or internationally, to handle the business activities for the firm. At this era, it is no longer an option as much as it is a necessity and has become a common business practice that allows small and medium size businesses to gain extra services and skills that are usually hard for them to develop due to shortage of manpower or financial restrictions, or maybe both. It allows the firms to be more focus on their core competencies, rather than tying up considerable company funds in something that can easily and cost effectively be done somewhere else and, more importantly, it will surely help the firm to cut the costs and improve their performances efficiently…

    • 850 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    It also eliminates some conflicts with the workers and decreasing some wasteful activities such as payroll processing. Outsourcing can makes management team to devote its attention to refining…

    • 840 Words
    • 4 Pages
    Improved Essays