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Why Is Outsourcing Important To America?

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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

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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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Exporting the American Way During the twentieth century, America spearheaded an effort to liberalize markets around the world, creating a global economy. This global economy created by the United States has caused it to lose its position at the top of the economic pyramid to other rising countries. In Barbara Ehrenreich’s “Your Local News-Dateline Delhi,” Ehrenreich discusses the negative effects of job outsourcing in America as well as mocking the situation.

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I) Introduction With the development of economies and globalization, offshore outsourcing activities to overseas countries with huge benefits such as lowering costs, improving quality of product and service innovation are becoming strategic plans for the business operations of companies. Telstra Corporation Limited is known as the largest Telecommunications and Media Company in Australia offering telecommunication and entertainment products and services to help potential customers improve their lives and works through connection (Telstra website). Telstra had progressively implemented outsourcing processes related to Information Technology (IT) and Business Process (BP) services since 2003 with the aim of reducing cost and improving efficiency (Oshri et al 2013, p. 102).

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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

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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.

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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.

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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).

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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.

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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.

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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.

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Many U.S. companies are faced with the same question: Does outsource offshoring provide significant benefits to our company? Many will say yes, as outsource offshoring tends to cut the costs in either the production of goods or delivery of services. Others will say that the offshoring of jobs will negatively affect the U.S. economy. On the other spectrum, U.S. workers big question is: What jobs are offshorable and am I in danger of losing my job? In the past, it was thought that only low-skilled work was capable of being offshored, but as other countries become more advanced in the field of work it is evident that this is no longer the case.

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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

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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.

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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

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