As many countries begin to lose money to bigger corporations such as Walmart or Apple, how will the US economy and others change to compete? One word comes into mind for most and that would be outsourcing. The definition of outsourcing means to obtain (goods or a service) from an outside or foreign supplier, especially in place of an internal source. What this means is to move your company where your paying at least $9.25 an hour to producing your item in China where your paying only a few cent per hour. Despite still needing to ship the items back to America companies are still making an increased profit margin allowing companies to keep their businesses alive and in the black. Even if it means moving only one branch, it can be enough to keep a business open. Outsourcing is great for the country that are having many more jobs opening for their people but can be horrible for the country losing said jobs. What do you think? Do you think outsourcing can actually help maintain more jobs for the ones that are losing them? EX. US loses jobs to China due to cheap labor, can this help maintain jobs in US?
As we watched in the video, there aren't many jobs in China so labor there is very cheap. I think outsourcing is good for the company because it saves them money but so many people lose their jobs in the US. I personally think that the US has so many job opportunities compared to China so it is good that China is getting jobs that most of the time people in the US would use machines for, like the factory line.
ReplyDeleteThe company is doing what it needs to do in order to compete in todays business world. In the video, if the company did not move part of it to China, they would have failed resulting in thousands of jobs lost in the US rather than just hundreds. Sacrifice's like these are made for the better of the economy, the business, and the people in my opinion
ReplyDeleteIt benefits the American companies substantially, although many people do lose their jobs. I think it's important for the people in China to get the opportunity to have a job since many people living in that country are extremely poor. Americans would lose their jobs anyways as technology advances because many companies are now investing in machines to operate production.
ReplyDeleteI do not believe machines are causing people to lose their jobs rather than changing them. Now, instead of having a person put a screw in a product a thousand times a day you can have a man who knows how to repair a machine that will do that.
DeleteIt's hard to say whether or not outsourcing is beneficial or not to the US. Outsourcing is beneficial to the people involved in the management of big companies. This is because the labor is cheap and there are no taxes in Free Trade Zones. But to the US people that aren't apart of the management, it is detrimental as many of US people don't have or lose their jobs.
ReplyDeleteI've never taken an economics course, but from what I've read (sources may or may not be reliable) on the Internet, I think it's safe to say that outsourcing doesn't directly hurt a country's GDP per se. However, it does widen the gap between rich and poor, which I don't think is good for a country overall.
ReplyDeleteWhen a company in America moves its factory to China, Americans who used to work at that factory lose their jobs, but the company itself profits. So the poorer factory workers lose out to whoever owns the company, be it share owners or some individual. In this instance, outsourcing probably didn't hurt the American GDP, but it did widen the wealth gap and increase unemployment.
While outsourcing may not directly hurt a country's GDP, it worsens wealth disparity and increases unemployment. However, outsourcing does increase the outsourcer's profit margin. Because of this, I think it's really tough to say whether or not outsourcing is beneficial to America.