Free trade, when it is fair trade, is a good thing. It helps other countries get out of poverty, even if it is a long process.
But what isn't good is the people who lose their jobs to the outsourcing. I'll describe a scenario.
You build X-Gadgets in the USA and sell them for $100 each. For whatever reason, you decide to send operations overseas to Thailand. Now you can sell X-Gadgets for $50.
Well, every consumer that buys X-Gadget for $50 are going to benefit from this outsourcing. The people who made X-Gadgets in the USA that lost their jobs, on the other hand, are suffering negative consequences. Chances are, there are less of those people than consumers of X-Gadgets.
The people that make X-Gadgets in Thailand should be making more money than normal. Even if it is low wages, eventually competition in the labor marketplace will see those wages increase and people want more for themselves. It can take a long time to occur, but it already has in countries like Japan, South Korea, and even China.
It is a balancing act, however. If X-Gadgets are less quality, it will hurt the company. Also, if producing X-Gadgets in Thailand is viewed poorly by the consumers, they will sell less as well.
In the end, the world benefits. It does tend to take away intense, labor jobs from the most modern countries and put them in the lowest and then service-oriented jobs will replace them.
Who really wants to work sewing underwear in the USA now? I'd do it for $100/hr!! But I also don't want to pay $100 for a pair of underwear either.
Economics can get crazy. Of course, who wouldn't rather buy something made in their own country? I think companies honestly try to make this happen. Sometimes, it just doesn't.
2007-03-17 14:14:39
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answer #1
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answered by Mullah Mike 3
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Out-sourcing jobs is a major problem! Companies take jobs from America to foreign countries, import them back into the U.S. at the same or higher cost than when made in this country. They pay the foreign workers a meager wage that makes their profit margin at all time highs. The only ones making money are the investors & CEOs. American workers are left with few good paying jobs & far less in benifits. Insurance rates are sky high, Medicine is out of sight, many families have had to forgo insurance altogether. The U.S. is a debtor nation & yet the trend continues. We need to bring the jobs back to American, pay a decent wage & quit cheating the American people.
So many people seem to think that we owe something to other countries. We need to end their poverty. Well, what about the poverty here in the U.S. The bankruptcy rate is going up every month. We are at an all time high in bankruptcy. Sure some people have over spent, plenty have not, they are just trying to make ends meet at low paying jobs, at times working two jobs because they cannot keep up with the rising cost of almost everything we buy. Food prices are outrageous, clothing companies that used to have good names, are not any more, they have their goods made overseas & the quality is gone.
It is not our duty to care for the world, our first duty is to take care of our own. Once that is done, then we should help others.
2007-03-17 14:15:35
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answer #2
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answered by geegee 6
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We live in an era of "Buy It Now" rather than saving and investing for things.
Any number of products you use that are made elsewhere would cost you a lot more, simply by increased labor costs, offset somewhat by lower shipping costs.
Another argument is call centers. Imagine sitting at a desk all day for your job. You get carpal tunnel syndrome. You file a Worker's Compensation claim. This costs your employer a lot of money, sometime in direct costs or indirect costs of insurance rates going up. So, they move the jobs offshore. India, as an example, has no Worker's Compensation system. So, someone with the same medical problem, in addition to getting paid far less, doesn't get the same benefit out of it.
I'm not saying this makes it right. I hate that so many things aren't made here. I'd change it if I could.
2007-03-17 14:06:37
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answer #3
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answered by MoltarRocks 7
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You what former Superpower had a American first type policy only they called it Soviets first? A country that used to be called the Soviet Union. It was great everything was Soviet made, no immigrants, no unemployment, no competition from foreign countries, free health care, free education. The only problem was it was the most miserable place on the planet to live. So if you like Communism/protectionism I wish you best of luck with your America 1st plan. Comrade.
2007-03-17 14:16:25
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answer #4
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answered by Anonymous
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I hate it. The fact that they are going to outsource jobs from America just for more profit is stupid and greedy. I think American jobs should be kept in America
2007-03-17 14:04:28
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answer #5
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answered by Anonymous
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Hopefully, that's the ONLY reason they do it. A publicly held corporation has one reason and one reason only for existence: to turn the highest possoble profit for its shareholders. I do not invest in a corporation in order to run a breadline for workers. I invest for a good return. If the workers have a problem with that concept, perhaps they should invest as well...then they could have a voice come proxy time.
2007-03-17 14:11:27
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answer #6
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answered by Rick N 5
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That is a tough question...it is a double edged sword for sure. Bottom line, in a global economy if you aren't competitive then you'll loose market share, so you have to do what keeps you there. I think the U.S. has to get better at math and science to ensure we churn out enough scientists and engineers to continue to power our companies and thus our economy.
2007-03-17 14:05:17
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answer #7
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answered by Steelhead 5
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No it is not right!! It takes jobs away from hard working Americans who need a paycheck to feed their families!!
2007-03-17 14:04:53
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answer #8
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answered by Anonymous
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I support outsourcing! Our CEOs need to earn more money and lose money if we pay Americans to do the work. If they have to pay Americans to do the work, our CEOs earn less money!
2007-03-17 14:12:17
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answer #9
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answered by Kerbang! 1
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if too many people in this country don't have jobs who is going to buy all their products?????????
2007-03-17 14:04:51
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answer #10
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answered by J 2
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