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Pros And Cons Of Outsourcing In The United States

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In the United States our economy depends heavily on other countries to produce goods and services. This process called outsourcing which according to Merriam Webster, is defined as, “producing something, such as some goods or services needed by a business or an organization from outside sources and especially from foreign suppliers.” Hundreds of businesses rely on outsourcing as a way to create their goods or products that they eventually sell to people in the United States and other countries. Outsourcing has become a very popular method in the United States; however, it has caused major controversy in the business world. Outsourcing was first recognized as a business strategy in 1989 and has not slowed down due to the success that outsourcing …show more content…

Although businesses think of this as a great opportunity there are many downfalls of outsourcing. One of the biggest downfalls is that it hurts the country’s economy as it is losing the business to another country. Many large businesses employ thousands to hundreds of thousands of people at a time. In 2012, large enterprises employed 59.9 million people or 51.6 percent of all employees which shows how immense the workforce is in businesses (Caruso). When these large enterprises choose to outsource, they do not realize how many people are getting laid off work due to outsourcing. “In 1960, about one in four American workers had a job in manufacturing. Today fewer than one in 10 are employed in the sector, according to government data” (Long). The people that are losing jobs are family members and friends that have dedicated their adult lives to their jobs, depend on them to support their families, yet the company’s main concern is in more profit. Outsourcing hurts the economy in a broad way but most people do not realize that doing this can hurt a company internally. Security issues are just one of the problems that businesses face when choosing to outsource. When a company moves a product to another country, it is more than likely going to go through a third party organization. In doing this a

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In order to determine the whether an outsourcing activities would have a positive or negative impact an evaluation of the activity should be undergone. This evaluation examines the required coordination, strategic control, and intellectual property characteristics of the activity (Chase & Jacobs, 2013, p.444). The required coordination aspect examines the difficulty to complete the activity with limited interaction due to geographical locations. Outsourcing an activity that would result in a large amount of back-and-forth exchange would not be wise to proceed (Chase & Jacobs, 2013, p.444).

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In Barbara Ehrenreich’s article, “Your Local News”, her ideas about outsourcing help the reader understand Fareed Zakaria’s thesis that we are living through a power shift called “The Rise of The Rest” by explaining that America is not declining but is helping everyone else rise above. These authors come together to further understanding of the shift of power that has occurred due to outsourcing, putting America in the backseat of progression, but not out of the race. Ehrenreich introduces his ideas by explaining that “in the eighties, US companies began outsourcing the manufacturing of everything from garments to steel…”, but by the nineties, “back office and call center jobs migrated to India” (609). This helps the readers understand Zakaria when he he tells his readers that “for the first time ever, we are witnessing genuinely global growth.”

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This business further boomed in 2000, since 3,500 maquiladoras were established and housed 1.3 million employees (“ABC-CLIO”). Because of the low labor costs, every year, American businesses that outsourced saved $30,000 per worker, which allowed them to make more

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Braydon Kriegel Professor Champion KW Composition 3/1/23 Localized Manufacturing: A Step in the Right Direction “From 2000 to 2009, America bled nearly six million manufacturing jobs, or a third of its industrial workforce, as companies shifted production overseas.” Jesse Walker, through the medium of her piece “Outsource Locally”, explains the severe damage that the workforce has taken from the globalization of manufacturing. Even today, big corporations are outsourcing their labor and manufacturing to other parts of the world. Localized manufacturing is the idea that retailers can produce their product in their local area, rather than outsourcing labor to other areas of the world. This is a growing problem in society, and it’s reflected in

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According to the report, the sharp increase in numbers indicates the growing importance of emerging markets, particularly in Asia, traditional American companies such as Caterpillar, Microsoft, Wall -mart and General Electric. These figures are considered to be undermining the recovery process in the US labor market, which still suffers from high and low salaries. Indeed, the data show that in 2009, which is considered in a recession and falling profits, multinational corporations have cut 1.2 million jobs (5.3% of the workforce) in the USA compared to 100 thousand (1.5% of the work) abroad. The companies themselves range from refusing to respond to the data (such as Oracle) or making excuses for the situation.

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We can’t change the fact that most of the products we use in our daily lives our outsourced. We can however rally to change the conditions that these products are made under, and hold corporations directly responsible for their actions. Outsourcing isn’t perfect, but what would our lives and those around the world be without

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The definition of outsourcing is “(of a company or organization) to purchase (goods) or subcontract (services) from an outside supplier or source.” In laymen’s terms, it’s when companies hire foreign workers to do the jobs of U.S. workers, simply because a bigger profit can be made. Using Joel Best’s Social Problems Process Model, one can analyze the different aspects of social problems and apply these observations to Outsourcing. This model’s analysis may show that Outsourcing is a social problem that needs to be resolved in some way.

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“The main negative effect of outsourcing is it increases U.S unemployment. The 14 million outsourced jobs are almost double the 7.5 million unemployed Americans”(1A). For example, China has received thousands of U.S jobs because of the cheap labor costs and for the fact that they will not buy american goods unless they are manufactured

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We can see many large corporations that outsource all of their production, for example, Nike. Nike was under a large amount of scrutiny after they were exploited for their poor factory conditions. Although their image was tainted from these practices, Nike has initiated many practices and policies to improve their conditions for their employees overseas. The article, “The Myth of the Ethical Shopper” suggests that these corporations are not aware of the specific factory their products are produced. Large corporations, such as Nike, Disney, and Wal-Mart, purchase their products through mega suppliers.

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Outsourcing directly contributed to job loss domestically, with 2.9 million people were put off work during 2001 to 2009. (Lerman & Schmidt, 1999) Employers relocate their industries overseas to enjoy lower cost of cheap labors and avoiding paying payroll taxes or social security. With less financial flow in the industrial stream, national tax base has been impaired. National income declines, so the government is lack of revenue to consolidate social welfare and public services, which has resulted in dramatic drop in people’s average living standard and quality of life. Taking America’s comparative advantage of high-end technology and human resources into consideration, one may easily find that the nation will leave its low-end and limited skilled productions and human resources to oversea market to boost productivity and maximize profitability at the same time.

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Outsourcing is one of the numerous resultants of globalization. Companies from different nations (by and large created nations) outsource their fabricating, marketing, and other back end tasks to other nations. This demonstrates to be cheaper for them as there is a tremendous money distinction between the two nations. Numerous times, companies get to total their work in fair half the cost of what they utilized to pay already.

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Sit-down restaurants’ ability to have short turnaround times from ordering to services raises the question “How are they able to serve everything on the menu so quickly?” Persons may have guessed that it was due to a highly competent and efficient workforce but the reality is that restaurants are now outsourcing semi completed meals in order to save time in the preparation of their meals. These pre-prepared meals can either mean that restaurant chefs have to add a few ingredients before serving or simply heat and serve. Although there are mixed views on this practise by restaurants, it is becoming more commonplace and it the near future this trend can be the new normal. Advertisements for the outsourcing companies advertise the concept of “Hours

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Shiva Chhetri Mariya and Carli Amber Randall 9:00-9:50am 03/02/2018 OUTSOURCING IS GOOD Specific Purpose: To persuade my audience that outsourcing is a good practice and is also beneficial to the American market. Central Idea: When talking about outsourcing the general consensus seems to be that it is a bad practice and is non-ethical. However, few understand the real benefits that come from this practice past the idea that it is a taboo in our country.

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Making a good business decision doesn’t always mean it is the best possible decision. Economic benefit is not the most important thing. We need to hold everyone else’s wellbeing and the state of our planet in high regard. We need to be concerned with the activities that are taking place to accomplish the outcome we are seeking. Outsourcing may be a smart economic decision, but we need to investigate it.

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