Outsourcing jobs to foreign countries allows companies to save a whole lot of money. They don't have to pay the higher wages that Americans demand, they don't have to deal with American unions, and people in poorer countries are actually thankful for what they are being paid rather than grumbling like Americans do. By lowering costs, the company increases profit. Part of that profit goes to investors and the corporate leadership, but a lot of it goes back into the company and is reinvested to enable the company to expand its operations and to research new methods and new technologies.
Of course it also has a downside, for the Americans who lose their jobs. There's no question it will be difficult for them, since the jobs for their skill sets are being transferred out of the country. This is called structural unemployment, and is the worst kind of unemployment from a macroeconomic perspective. Outsourcing creates this unemployment and shrinks our economy. However, it is also an opportunity. Those who are losing their jobs to outsourcing can be retrained to fill jobs our economy desperately needs. It won't be easy and it won't be cheap (which is why I think the government should help retrain many of these workers) but in the long run it will be best for the American economy, as we shift towards a more flexible and adaptable service-oriented economy.
You should note that I'm currently at university studying to be an economist. While that gives me some insight to the issue, since I spend my time studying things like outsourcing, it also biases me towards what's better for the economy as a whole, and towards the education perspective. Good luck with your essay.
2006-07-10 12:02:21
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answer #1
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answered by Tim 4
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I tried to get a job with Bimbo Bakeries in Fresno. Now I just learned that they not only bought the Sara Lee brand, but they are closing their plant in Fresno, and 150 workers will lose their jobs. Maybe it is no wonder I never heard back from them. Hershey's did the same thing years ago when they were in Merced. They moved to Mexico. 500 jobs lost. Nobody says anything. Not everybody can afford a college degree, and even Target and Walmart don't want to hire.
2015-02-02 13:22:58
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answer #2
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answered by Troy 1
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I am against outsourcing. It takes jobs away from the US. In a customer service prospective, customers are potentially lost because the person on the other end doesn't necessarily speak adequate English to answer the questions. It becomes frustrating. The American wages cannot compete with the overseas wages which puts all non professional jobs at risk.
2006-07-10 10:21:36
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answer #3
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answered by Anonymous
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Your spelling whacky.
I work for a midsized corporation and have seen outsourcing used to our advantage. Some of hte jobs going to other compaines are not actually going outside the USA, jsut to other places whose focus is to repeat a process that we've developed. In other cases, the tariffs, customs delays and transporation costs are reasons why a corporation woud choose to make something abroad. The textiles industry is a good example: bolts of fabrics can be made in the states, but most of the places where the hosuehold names sew is pan-asian. So it makes more sense to set up fabric manufacturing operations somewhere there. The economist is right, american labor needsto grow in skillset to accomodate the shift away from hands on $25. an hour to screw bolts on. That era is over.
2006-07-10 13:50:09
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answer #4
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answered by Josie 2
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the benefits of outsourcing are that the company will save tons more money that's probly the only good thing about outsourcing, the downside about it and yes i can tell you tons about it cus i talk to Indians for 6 to 7 hours a day for tech support, the problem with that is THEY CAN NOT SPEAK or UNDERSTAND English and Americans do not like talking to someone who can barely speak English
2006-07-10 10:32:45
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answer #5
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answered by ♥ Crystal C ♥ 4
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first off, I would learn to use spell check.
2006-07-10 10:20:42
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answer #6
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answered by Smitty 5
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