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Pros And Cons Of Offshoring

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Position.
Offshoring is the business practice of basing part of a company's production or services abroad in a foreign economy, which is generally done with the hope of increasing the profit margin for the business. The pros of offshoring greatly outweigh the cons, which is why it has become a common practice for many American businesses. Offshoring improves the economies of both domestic and global economies, which will in turn further improve our businesses. That is why imposing stiff penalties on businesses that do offshore will negatively affect the world economy and such penalties should not be put into effect.

Why the government should impose stiff penalties that offshore jobs.
1. The government needs to implement stiff penalties for companies that offshore because the practice results in many unskilled or blue collar American workers losing their jobs. In the year 2000, approximately twenty percent of all US jobs were in manufacturing. That number dropped significantly to only five percent by 2012 (Business Insider). Offshoring …show more content…

Another disadvantage to offshoring is that it can increase general costs and make companies lose profits. According to a report from Circadian Technologies Incorporated, there were $206 billion in losses due to companies offshoring their work in 2003 (Entrepreneur). There are many hidden expenses to offshoring that companies do not always consider beforehand. First, offshoring requires the development of a new training program for workers overseas and finding new ways to supervise them overseas. As a whole, this entire process could potentially cost the business more than the initially expected savings that would have been generated by making the decision to switch to offshoring. Another major factor to consider is that shipping prices will increase drastically in order to bring the products back to the domestic country. Again, the expense of this change could end up exceeding the amount of money being saved from

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