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How Does Outsourcing Affect The Economy

429 Words2 Pages

Jobs outsourcing is defined when U.S. companies, of any size, hire lower-paid employees in emerging markets in lieu of Americans. The advantage of jobs outsourcing is it helps U.S. companies become more competitive in the global marketplace by keeping costs low. The disadvantage is that it causes unemployment in the U.S. and it eliminates the potential tax revenue from thousands of unemployed Americans. Restricting job outsourcing may provide more job opportunities to many Americans, but this could also make U.S. companies less competitive. This is the major factor why many U.S. companies are going overseas and are opting towards outsourcing.
The debate on just how outsourcing affects the US economy can be justified from both sides. Those who are in favor of outsourcing believe it has a positive effect on the U.S. economy because it reduces costs for companies. This in turn creates more opportunities for greater free enterprise in the US which leads to more Americans holding higher level jobs. Those who oppose outsourcing suggest that hiring foreign workers has a negative effect on the US economy by eliminating many jobs, particularly by semi-skilled or skilled laborers. Both sides have some valid points regarding this issue while many Americans have voiced their opinion and others have navigated through neutral ground. …show more content…

It’s also the case that there are plenty of skilled labor jobs being outsourced to foreign countries. According to Techsunite.org, the top 10 companies that have outsourced the most jobs, along with the numbers outsourced

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