Outsourcing: United States and Economy Essay

Submitted By raeyoung95
Words: 592
Pages: 3

Outsourcing The ultimate goal of any business is to create a profit, and in today’s economy that can be more easy to accomplish in some countries than others. Companies outsource for a variety of reasons including: lower taxes, avoiding government regulations or mandates, and labor costs, this is especially true for companies based in the United States. Outsourcing is beneficial to the companies employing it, but is usually seen as harmful to the economy, and labor force of the country who is missing out on production. From a business standpoint, outsourcing has major benefits. Much more lax labor laws, and requirements in other countries mean more production for less money. In the United States, corporations face a plethora of taxes, and comparatively higher minimum wage standards than in countries such as India where many jobs are outsourced to. This allows for a cheaper priced product than what is totally produced in the USA. Multinational corporations have come under fire in the last few decades for the conditions of their employees in less developed countries. Children working 10 hour shifts for a dollar a day created some public outcry, but what truly propelled national attention to the major number of American jobs being filled by other countries was the most recent recession. The United States has experienced a mass loss of jobs for the workforce that are being filled by other countries because many businesses can’t sustain their current prices if they pay all the extra fees that accompany US standards. In a world that is increasingly interconnected across the globe, outsourcing is inevitable. Very few country’s economies are not tied up with multiple nations across the world, this can make outsourcing appear as less of a noteworthy occurrence. So much of a country’s economy depends on the actions and supplies of others that some argue outsourcing is just another bi-product of the new “global economy”. It may be better for individual nations to revert somewhat to the older ideas of domestic reliability in order to preserve the job markets for their workforces. The main problem with outsourcing is that it hurts the economy of the country missing out on jobs, but provides cheaper products for those consumers. So what is the best way to protect the…