It the last years, this practice has become more and more common among big scale companies, since the costs of productions are much cheaper in foreign countries especially third world countries.. As a result, companies such as Apple, Nike, etc. have decided to outsource their manufacturing jobs, yet this results in a lost of jobs in the United States and a larger rate of unemployment too. However, recently a company got a lot of attention, especially from president elect Donald Trump, for wanting to outsource their company to Mexico. Donald Trump campaigned for the creation of jobs in the United States and the stopping of companies from outsourcing their product. This company in particular was a perfect problem for him to executive his plan of stopping outsourcing. The company, Carrier which is owned United Technologies and located in Indianapolis, Indiana, is responsible for the manufacturing of heating and air-conditioning equipment. In addition according to article “ Trump deal in Indiana saved 1,000 jobs — but can and should it be …show more content…
United Technologies receives $5 billion US in contracts from the U.S. government annuall.” Even with the amount the company received from the government, they still planned on outsourcing its job to Mexico, which would result in a loss of 1000 local jobs. However, Trump made a deal with the company to save 1000 jobs in this company, yet the actual details of the deal was not revealed. However according to the Wall Street Journal in the same article, the company “received $7 million in incentives over 10 years from Indiana.” Therefore, this supports the fourth principle that people respond to incentives. The reason for these incentives could be to provide the company with money to increase their employment of workers. However, if the company were to lose these incentives, they would lose a big amount of revenue. Especially the parent company, since according to the article, United Technologies would lose 10 percent of the profits from government assistance. As a result, it is possible to say that the government is using the incentives to control whether the company wants to outsource its jobs. However, by doing this, the government is limiting the market, and intervening in the market in a negative way. Although, the company is protecting the jobs of 1000 workers according to the article, the company still planned on cutting 400 jobs and shutting down a factory that