Essay on Global Outsourcing of American Products and Services

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Global Outsourcing of American Products and Services
     Global outsourcing of American products and services is a trend that is becoming increasingly popular with large corporations. For the same services provided in the United States, corporations are finding quality work in other countries for a fraction of the cost. The country currently at the forefront of this trend is India. This paper will discuss companies that outsource business to foreign countries and also why they are chose to. The ethical implications to both countries in these situations will also be discussed.
     Many corporations are experiencing significant cost savings by outsourcing work to developing countries
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In 1996, workers from the Vietnam plant reported cases of “physical abuse, sexual abuse, salary below minimum wage and debilitating quota systems.” (http://www.saigon.com/~nike/) Cooperation between US labor groups and Vietnam organizations was by the intervention of the Nike Corporation. It is alleged that Nike sent a letter to a government official “accusing US labor activists of harboring a secret agenda to change the government in Vietnam.” (http://www.saigon.com/~nike/) Many workers’ rights and anti-sweatshop organizations are working together in an attempt to convince Nike Corporation to treat its overseas workers fairly. (http://www.saigon.com/~nike/)
     In 2001, an international human rights group filed a lawsuit against the ExxonMobil Oil Company. In this law suit, ExxonMobil was accused of “actively abetting human rights abuses in Indonesia.” ExxonMobil hired local army units to protect their natural gas fields in the Aceh province. These military units were supplied with the equipment necessary to build interrogation and torture centers, and dig mass graves. “The case brought on behalf of 11 Achenese villagers, accuse ExxonMobil for their involvement in the murder, torture, and sexual abuse of the local population.” (http://news.bbc.co.uk) ExxonMobil denies all allegations brought against the corporation. Due to the possible impact of these

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