¶ … Outsourcing" on the U.S. Economy
The increasing trend of outsourcing of jobs from the United States in recent years has assumed alarming proportions. Most projections indicate that the present trend is going to accelerate in future. The issue has invited greater attention recently as more and more categories of white collar jobs are now being outsourced by the U.S. companies while in the past only lower paid industrial jobs were affected. Some economists including officials of the present U.S. administration have shrugged off the phenomenon as part of economic globalization and believe that it would prove beneficial for the U.S. economy in the long-term. Others are of the view that the negative impact of outsourcing far outweighs its positive effect. In this essay, I shall highlight the negative effects of outsourcing on the U.S. economy, besides outlining the current and future trends in out-sourcing.
The trend of relocating jobs to other countries is not a new development in the United States as manufacturing jobs have declined ever since American companies started to establish factories abroad to take advantage of lower cost structures and wages. The decline in manufacturing jobs, however, was compensated for by greater job opportunities in the service sector. Since most jobs in the service sector were higher paid 'white-collar' jobs, losing the relatively low-paid manufacturing jobs to overseas competitors was considered a bearable set back. Moreover, the rate of jobs lost due to outsourcing in the manufacturing sector was relatively gradual and the U.S. economy had time to make the necessary adjustments. Also, according to the long-accepted theory of comparative advantage, everyone gains as...
Also, their variety has increased. For example, there are dozens of hairdryers on the market, produced by several companies, from large ones, like Panasonic, Philips, or Braun, to smaller producers that address this field also. These companies can now afford to introduce many types of hairdryers because they are manufactured in Asian regions, and their production costs have reduced, allowing them to expand their product range and to promote smaller
Outsourcing Its Impact The effects of outsourcing in today's economy Effects on People Being an expatriate Breaking the language barrier Culture Shock Outsourcing and people dynamics: Impact on company Effects on Economy Capital flows Impact on technology Global management and outsourcing The effects of outsourcing in today's economy Outsourcing has become an increasingly popular business strategy for transnational organizations. Many of the U.S. corporations started outsourcing their manufacturing operations since late 1980s. This was due to the potential advantages, both from an
The U.S. Department of Commerce reports that services to foreign clients brought Americans $131 billion in 2003. This was in addition to offshore services for U.S. customers, which grew by $7 billion. The report shows that labor-intensive production and administrative work has grown in low-cost places, while talent sensitive activities have grown in the United States (Malachuk, 2004). This is a major benefit of outsourcing. Weidenbaum (2005) argues that many American employees
U.S. Business Environment in the Next Decade and Implications for Business and Households. Over the last decade, the U.S. economy has been undergoing tremendous challenges. This is because the lingering recession and slow recovery have left the unemployment rate high. Evidence of this can be seen in figures from the Bureau of Labor statistics between 2008 and 2012 (which is illustrated in the below table). US Unemployment Rate from 2008 to
It is to be understood that outsourcing would result in an improvement in market performance and not its reduction. The advantages of outsourcing come with experience. So with each outsourcing activity adds experience which enables to improve upon the advantages and to work upon the disadvantages which opponents argue that outsourcing would offer. Conclusion Public sector institutions and firms have reconsidered the issue as to where the limit of their institution/firm
They grant significant respect to women, which allows them to easily adapt to the workplace. Humor is not valued within the Indian workplace, their culture encouraging formal relationships between employees. The Work Environment in the U.S. The U.S. work environment is significantly different than that in India. The business environment in the U.S. is results-oriented, encourages and support performance, efficiency, and productivity. The U.S. managers are trained in time management, given
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