Course Date Outsourcing by Americans in other countries has become quite a popular trend in America with many of the companies setting up their bases in other nation. As a result, all Americans suffers in two ways, as a result; the rates of unemployment are soaring up since firms are opting to opting to open shop abroad where the cost of labor is significantly low, the raw materials easily accessible…
However, the question of outsourcing has a brought about a lot out a myriad of protests, many of them by them based on the escalating the rates of unemployment. Notably, while there are some Americans that take it as a positive thing many more are scared by what it portends especially those who have lost their jobs to foreigners. According to Howard, in the article “Globalization is an anomaly and its time is running out,” China hosts very many of American china stores and myriad firms all are taking advantage of the cheap labor and raw materials. However, should China involve itself in search for oil from its Arabian neighbors there is potential for conflict. In such a case, America and china may be embroiled in an international row and this might force the investments in America to be closed down (Howard). Furthermore, due to political instability in many developing companies, outsourcing might mean risking losing the investment in time of riots or civil wars and the economy back home would suffer directly as a result of a conflict in which America is neutral. Outsourcing is a two-sided sword, effectively cutting both parties in the arrangement, in America; there are several financial gains especially for the firms involved. They get to form international networks thanks to globalization, obtain cheap labor, wide market and finally they are pay very little tax since some of the countries in which they outsource give foreign investors tax breaks to encourage them and other multinationals to invest therein. In this paper, the issue of outsourcing will be examined closely in order to support, through argument, the position that outsourcing is doing more harm than good to the American economy. Outsourcing carries a myriad of negative financial implication for America; one of these is that it greatly contributes to unemployment in the USA. It is predicted that 949 million will be lost because of outsourcing annually. These losses are not purely business by a huge fraction of it represents lost wages, to Americans, whose former employers have decamped so they can hire cheaper labor. Indirectly, outsourcing causes problems such as;, inability to live comfortably, educate ones children and accumulation of debt , which may culminate in one losing their home or car should the creditors come calling. Since outsourcing often involves non-English speaking countries in Asia such as China, and India, some of the cultural value attached to the goods will be lost. This is because the people who produce goods after outsourcing are no familiar with American culture not having prior experience. As such, some of the goods produced abroad are of poor quality of not culturally relevant to the consumers. Outsourcing in many ways involves relinquishing managerial control over the goods being manufacture, if one outsources say to a company in India, the Indian manger will have full control over the products despite the fact that they may not fully understand the job at hand. At the end of the day, it is better that a firms work is done by the companies own employees who they can monitor and exercise authority. When one outsources, there are several hidden costs involved, this is because ...
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