ipl-logo

Why Is Outsourcing Important To America?

645 Words3 Pages

Could you imagine pulling $2,000 out of your wallet if you wanted to upgrade to the next iPhone? This is exactly why outsourcing holds importance in companies and is crucial to getting consumers the latest and greatest in technological advancements. Recent startups have realized the benefits of outsourcing everything from payroll to manufacturing immediately and companies already stationed in the United States have also moved most operations overseas to drastically cut costs and increase the bottom line while passing down these savings to the consumer. Many will argue that outsourcing is just “helping to destroy your own country” (James), but, when used effectively, outsourcing can result in happier consumers while still preventing damage to America. Outsourcing should be utilized in our country to decrease the price of products, allow greater focus on innovation, and increase the output …show more content…

First, and most directly connected to the consumer, is the decrease in the direct cost passed on to the retailer. The cost of an item is combined with a small retail overhead and then presented to the buyer. If this cost is too high, the buyer will not purchase the item and technological advancements from the U.S. will cease to exist because of the lack of demand and profit. Second, outsourcing jobs allows the company to better focus their attention on innovation instead of logistics. From a manufacturing perspective, outsourcing to a large manufacturing plant overseas takes away issue of monitoring a in-house manufacturing operation on American soil. Once the final project is presented to the outside manufacturer, it becomes their duty to deal with any related equipment costs or problems. They can also add the product

Show More
Related

Examples Of Making It In America By Adam Davidson

1287 Words | 6 Pages

Sills explains how it is determined whether the company outsources production of a certain product or make it in America. Sills tells Davidson: “the main thing I think about is survival.” Parts that need skilled workers have to be made in America to assure quality. Standard Motors needs the highly skilled workers from the United States to assure quality of their parts, so “even if Mexican or Chinese workers could do Maddie’s job more cheaply, shipping fragile, half-finished parts to another country for processing would make no sense.” Parts that don’t need to be high quality are outsourced because the company simply can’t afford to make everything in the United States.

Read More

Timothy Taylor In Defense Of Outsourcing

675 Words | 3 Pages

Timothy believes that outsourcing jobs will be offset by the creation of service jobs involving the newly developed products. For instance, the production of personal computers outside of the United States has greatly reduced the price of personal computers for Americans; therefore, more Americans can now purchase a personal computer – where before it was a far-stretched concept. In turn, these personal will create service sector jobs involving marketing, selling, and servicing of the personal computers (Taylor 371). Taking this claim at face-value, this argument for outsourcing would be extremely encouraging. The magnitude of job creation could be broad – especially when considering the possibilities outside of personal

Read More

Telstra Outsourcing Case Study

511 Words | 3 Pages

The economic fluctuations strongly influence on operation of the firms. The big gaps of wage inflation rates and exchange rates between developed countries like Australia and developing countries have significantly endured over time and they can be the financial attractiveness of outsourcing (Postma et al 2013). For instance, in last few years, after Global Financial Crisis occurred, the Australian currency strongly appreciated (Manalo et al 2014); other currencies from developing countries depreciated, such as Indian Rupee depreciated 50% in 2011 (Postma et al 2013). So this was a big advantage for Telstra to make payments for operational and labor costs in foreign countries when implementing offshore outsourcing

Read More

China Vs Us Research Paper

544 Words | 3 Pages

companies get goods produced in china? U.S. gets their goods produced in china because they are all about quality, price, and delivery time. China makes their goods with good quality, care, and has the goods delivered on time back to the companies. How does offshoring impacts the domestic economy? U.S. firms can create more domestic employment in other stages of production.

Read More

Why Is It Important To Buy American-Made Products In America?

590 Words | 3 Pages

The majority of products sold on the shelves of American stores today have the words “Made in China,” or any other country, on its labels. Recently, a new trend of buying American made products has surged due to the fact that the American people have realized the multiple benefits of buying items with “Made in USA” on the labels. The benefits of purchasing only American-made products are that they help the U.S. economy, help out Americans, and are trustworthy products. Currently, the national debt in the United States is around seventeen trillion dollars, and is constantly increasing by tremendous amounts each day.

Read More

The Controversy Of Outsourcing In Today's Economy

632 Words | 3 Pages

The more companies outsource the more job opportunities become available worldwide without excluding the local workers not outsourced. The proof is in the numbers, “between 2004 and 2014, the most recent year for which U.S. government data are available, total employment at foreign affiliates of U.S. multinationals rose from nine million to 13.8 million. Yet the number of jobs at U.S. parent companies rose nearly as much, from 22.4 million to 26.6 million”(Slaughter). It is evident that outsourcing has its benefits to the economy as a whole as new jobs have sprung up due to the implementation of it. The more jobs the more the economy benefits, suggesting that outsourcing should be applied to more companies.

Read More

Made In America Research Paper

551 Words | 3 Pages

Regularly, the USA importing from other countries boosts the economy of those countries before boosting America. Moving manufacturers locally will cause a loss of money to those countries and possibly irritation, which can result in high exporting rates for America into other countries. Sincerely, Aniece Banas Citations: America Movement Team. (2018, March 08).

Read More

Pros And Cons Of Offshoring

805 Words | 4 Pages

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.

Read More

How Do Transnational Corporations Contribute To Economic Globalization

459 Words | 2 Pages

This results in Nike being able to produce their products cheaper and more efficiently, as well as bypass certain taxes that they would have to face in the U.S. The money savings help them competitively price their items for the most optimal success. Nike is obviously not the only TNC that has done this, big companies such as Adidas, Coca-Cola, Apple, and Microsoft have been known to outsource. Transnationals benefit the world's economy in many ways. One of the ways is that they help create jobs and labour in developing countries.

Read More

Pros And Cons Of Offshoring

702 Words | 3 Pages

Offshoring, provides the simplicity of working with individuals and organizations in different nations as the distinction in pay rates was sufficiently extensive to compensate for the additional transportation costs, moreover the Internet and the Web lessened "transportation" costs for some sorts of data work to very nearly zero. Social and ethical implications of offshoring from US workers Perspective: • Offshoring of lower-level IT-related occupations will cause disturbance for individual US laborers bringing about a mismatch between laborer’s abilities and the organization’s demands. • It additionally diminishes general human capital levels in the nation, and debilitates the finish of upward versatility for some U.S. laborers, who saw post-secondary education as the course to a higher expectation for standard of living. Thus, if offshoring decreases business openings in specialized occupations, it might discourage college enlistments in specific fields influenced by offshoring, additionally lessening the country's human capital levels. • It is generally concurred that Offshoring represents the likelihood that U.S. laborer’s wages will stagnate as laid-off specialists may discover occupations, yet at low wage levels.

Read More

The Impact Of Outsourcing On The US Economy

673 Words | 3 Pages

Introduction One of the most important consequences of the forces of globalization and liberalization has been the integration of economies in terms of freer movement of goods, services and people. As trade barriers have reduced, it has become easier to engage in trade and exchange resources across economies for achieving efficiency and effectiveness in operations. This has also created problems in terms of job losses for the developed nations as increasing number of jobs are assigned to employees in developing economies where the cost of labor is low. This phenomenon of outsourcing has been analyzed in this paper in terms of its impact on the US economy and jobs, the current status and steps to avoid the same.

Read More

Offshoring Case

1448 Words | 6 Pages

The second reason is that countries with large populations, such as China and India, have a larger pool of qualified workers and graduated college students ready to work. After looking at real world examples of offshoring going on today in high-skilled work fields, such as accounting, it is safe to say that these three factors together are enough for a company to look into

Read More

Social And Economic Changes In The United States

531 Words | 3 Pages

Some economists believe that outsourcing jobs “puts enormous downward pressure on American wages” and negatively affect the society (Harper & Leicht, 2011, p. 113). Workers in developing countries can provide similar service but at a lower price. In this way, they may take Americans’ job away and globalization may reduce the salary of

Read More

Problems Of Outsourcing In America

1001 Words | 5 Pages

Outsourcing lets outside countries grow their economy. US Companies are providing a substantial standard living to foreigners. Generating employment for outsiders but disregarding American employees. According to Lee Don, a philippine social worker, “More than 1 million Filipinos now work at call centers and in related outsourcing businesses, mostly serving American companies” (Don). American people lose their sense of security.

Read More

The Rise Of Globalization

1028 Words | 5 Pages

Mostly it was done to minimize wages and labor laws, in short to create more profit. Outsourcing has directly benefited the trade balances of countries. It has been a beneficial for the global economy, it has helped tremendously for global growth, and economic growth in developing countries, while companies were able to offer lower prices. Consumer goods are cheap because they can be produced abroad, a great thing for the people and the low wage labor shortage is nonexistent. In this century outsourcing is still a very important economic tool for global companies to remain competitive, but interestingly there have been several companies based in developing countries which outsource their research and other departments to developed countries, mostly to be closer to the market, but also to gain access to the highly qualified workers in these

Read More

More about Why Is Outsourcing Important To America?

Open Document