The Effects Of Outsourcing

Improved Essays
Every hour of every day could be filled by the stories of a family’s breadwinner losing their job to cheap labor overseas when their greedy company decides to globalize. My perspective is driven by the effects of outsourcing will give the general public lower prices on goods, but will also destroy the U.S. economy in the long run. I do realize that globalization affects more than just Americans. When businesses move the majority of their jobs overseas, those countries experience a boom of economic growth and often bring them to the twenty-first century of technology. However, the U.S. economy doesn’t get affected as much as the loss of thousands of jobs would seem to cause. After researching a variety of perspectives on globalization, I find …show more content…
Before Nike, jobs were “10 to 14 hours a day in the burning sun or the intensive rain” (189). Those horrible conditions compared to an air conditioned factory with regular work hours are a major improvements for the county. The Nike Vietnamese workers also get paid 54 dollars a month, which is so high “that they are almost luring doctors and teachers away from their important jobs” (189). The Vietnamese people look to be making little money, but compared to farming, they are making extraordinary sums of money. Even people who get paid higher in Vietnamese society consider working in factories. With this extra money, parents can afford to take 2.2 million children out of the fields and into school (190). This will improve the country because these kids will be able to do more with their lives than being just another farmer. I can see the positives in this, but Norberg doesn 't address the American jobs lost and the negative effects to the U.S. economy, and these are the things that American want to know when it comes to …show more content…
Workers at large companies, like General Motors, are currently costing companies “$56 per hour…[while] in Mexico, a worker costs the company $7 per hour; in China, $4.50 an hour, and in India, $1 per hour” (Rattner). It is unrealistic to expect companies to stay in the U.S. with such inflated hourly rates. It is strongly supported by the decrease of factory jobs in America, and new jobs in that field are increasingly hard to find. Americans need to specialize in jobs that are competitive, and “our greatest strength lies in service with high intellectual content, like education, entertainment, digital media, and financial services”(Rattner). These jobs will always be wanted and can’t be done by a person overseas. Include the higher wages, and it seems like a reasonable solution. But factories bring many jobs, and America can’t keep up with countries like China that support their private sector. The U.S. government “should concentrate its capital on infrastructure and other public investments that the private sector won’t make”(Rattner). These projects generate jobs while making society better for living and eventually provide a more suitable place for businesses to thrive. Rattner’s logic

Related Documents

  • Improved Essays

    This doesn’t create new jobs in USA which can cause unemployment rates to rise, this can lead to an incline in homelessness, which all in all effects the economy and the well being of…

    • 954 Words
    • 4 Pages
    Improved Essays
  • Great Essays

    The Truth behind the Business Strategy of Outsourcing The United States is one of the richest countries in the world, admired by other countries because of its strategic level of productivity and consumerism. To maintained the United States high demand, the country must adopt and develop new innovations in order to compete with other markets. Because the goal of most businesses is to create profit, the United States is one of the main countries to take their business to cheaper markets with the objective to increase profits by reducing labor cost and operating expenses. Outsourcing means “the usage of outside vendors to produce goods or fulfill services and functions that were previously handled in-house or in-country” (Boone & Kurtz, 2015).…

    • 1324 Words
    • 5 Pages
    Great Essays
  • Decent Essays

    Jon Carter Professor Martinez ANT 2410-004 25 November 2015 Fourth Quarter Film Discussion Response What is globalization? Oxford Dictionaries 1defines globalization as“develop or be developed so as to make possible international influence or operation.” Globalization helps out many countries. As discussed in the video “Global Minds,” globalization creates possibilities for a country to team up with another country to put resources together and help find solutions to problems. They can look for cures to cancer as well.…

    • 287 Words
    • 2 Pages
    Decent Essays
  • Improved Essays

    In Chapter 7, Massey proposed policy changes that might help to improve U. S immigration policy. The first one suggests to the amount of immigrant visas offered by the United States. Each immigrant will have to pay $300 fee for the work visa. Mexican people work hard and they contribute a lot to the economy is huge. The problem with this policy is that “visas would not be tied to specific employers or jobs”.…

    • 309 Words
    • 2 Pages
    Improved Essays
  • Improved Essays

    In the last two decades, the hiring of mercenaries and private military and security companies (PMSC’s) in conflict areas has significantly increased. This outsourcing has grown very rapidly with the conflicts in Afghanistan and Iraq, and while prominent global powers such as the US have become more reliant on services provided by private military firms and mercenaries, weak states as well as international governmental organisations have also recurrently outsourced military operations. The use of PMSC’s and mercenaries have resulted in human rights violations that have attracted international attention and debate over how private security must be regulated. Complications have arisen because there are currently no globally accepted norms or legal framework that can be applied to these private firms when human rights violations committed by PSMC employees or mercenaries occur. The delegation of Australia recognizes the impact that the privatization of security has on the contemporary security context, and deems the regulation and…

    • 527 Words
    • 3 Pages
    Improved Essays
  • Improved Essays

    A customer service call company in India will charge Joe $98,000 a year to cover all his needs: whereas, a company in New York wants to charge him $250,000 a year. Joe decides to go with the company in India not only because they are cheaper but also because this frees up $152,000 a year and he can hire employees making more jobs available in America. Cheaper services provided from countries overseas opens up money that can be used to pay American workers (Levy and Scott 22). As Philip Levy stated, “Some of the best goods and services come from the U.S.; others come from abroad. Outsourcing and trade give U.S. businesses and…

    • 762 Words
    • 4 Pages
    Improved Essays
  • Superior Essays

    Globalization a modern day way to describe the process in which different cultures are able to interact and learn from one another, through different ideas, items and people. Coming together to reconnect humans with the rest of the world, globalization is closely looked at and studied by those who want a clearer understanding of what it takes for people to be able to reconnect with cultures different from there’s. Thomas Loren Friedman, three time Pulitzer Prize winner, and current writer for the New York Times foreign affairs column since 1995, is a famous journalist who took a closer look into Globalization. Covering the topic in his prologue “Globalization: The Super- Story,” from his book Longitudes and Attitudes, Thomas Friedman uses…

    • 1870 Words
    • 8 Pages
    Superior Essays
  • Decent Essays

    Outsourcing America, in my opinion, has been bad, as someone who was a displaced worker at one time due to the company that I worked for closing down and moving to Mexico. The benefits of outsourcing have been enormous. For workers in poverty ridden countries, it has meant jobs and fast rising standards of living. For some industries, lower labor costs have brought higher profits. Modern consumers are enjoying access to more goods at lower prices.…

    • 381 Words
    • 2 Pages
    Decent Essays
  • Decent Essays

    Globalization is evident within the production of sweatshops. It creates unity and economically increases wealth. It builds jobs in areas that don’t have money, and brings the world together financially. Economic Globalization is an aspect of globalization that sweatshops pertain to. Economic globalization focuses on large companies and corporations becoming transnational, by having integrated operations around the world.…

    • 218 Words
    • 1 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
  • Great Essays

    It would be their moral duty to set up a fund to educate and train American workers for other kinds of work that cannot be outsourced. Unfortunately, not all employers feel morally obligated to do this. I would suggest the federal government step up and support these workers by passing mandatory laws in the event a company decides to take their work out of the country. The American Society of Civil Engineers has estimated that we need to invest $3.6 trillion by 2020 to rebuild our deteriorating roads, ports, airports, as well as fixing our fresh and waste water systems and other critically needed public facilities. This can be made possible if we train workers to fill these types of jobs and invest in rebuilding America’s declining infrastructure (Scott, 2015).…

    • 2963 Words
    • 12 Pages
    Great Essays
  • Great Essays

    One of the most popular subjects of debate within the literature focused on corporate outsourcing is the true intent of corporate outsourcing. Some scholars, such as Kenneth L. Deavers, believe that outsourcing is a corporate competitiveness strategy, not a corporation’s search for low wages and poor working conditions. Deavers’ primary thesis is that “outsourcing is the result of a complex change in the cost boundaries facing firms as they choose between inside and outside production. The question of what happens to wages is one to which there is not a simple a priori answer.” Instead, Deavers introduces four fundamental changes that have recently occurred in the labor market that drive companies to outsource.…

    • 1604 Words
    • 6 Pages
    Great Essays
  • Improved Essays

    Outsourcing is used in business when firms contract different firms, it in many instances entails transferring workers from one business to a further, but it doesn’t happen continuously. Outsourcing is an awfully strong and most serving when utilized in an efficient approach, it is commonly more low-priced to buy items from other businesses that has comparative potential instead than producing your own goods. Outsourcing has developed much controversy in contemporary time for countless explanations, before the user begins using outsourcing the outsourcer will have to compare many issues that might build up such as hidden rate, threat to safety and confidentiality, authorized consequences, exit limitations or complete dependence, and…

    • 1208 Words
    • 5 Pages
    Improved Essays
  • Improved Essays

    Essay On Offshoring

    • 792 Words
    • 4 Pages

    Blinder makes valid points on the rise of offshoring and how our economy may suffer from it. What he fails to mention is the fact that with America having such a dense population, the public can have a major effect on whether offshoring occurs, and if so to what degree it occurs. Self-protectionism is a key issue in American politics, such as the “Buy American Act”, and it is not to be taken lightly. Many jobs have already been lost to other countries through outsourcing. The self-awareness Americans have that offshoring is becoming an epidemic that will further threaten the American way of life, may be reason enough for companies to reconsider offshoring.…

    • 792 Words
    • 4 Pages
    Improved Essays
  • Improved Essays

    (Aart, 3) Due to the fact that a good and precise study can promote an insight into interesting and empowering and shift our perspective to a positive direction while a misguided core concept can damage our overall comprehension. (Aart, 3)Today the globalization concept has varied across disciplines across the world and across the theoretical, economic, political approaches of the societies. (Aart, 5) Globalization should be a way to understand many different views and concepts that secures and understands universal acceptance and can generate an insight that can be debated and intercommunicated with others, rather than a single viewpoint that causes self-abandons in order to reach that goal. (Aart, 6) To ask everyone to conform to a single view would be asking many people to abandon themselves.…

    • 1367 Words
    • 5 Pages
    Improved Essays