Outsourcing future conflictions among countries. Outsourcing is cost efficient

Outsourcing is the practice in which an individual makes production or services for a company and this method is usually used by companies as a cost-efficient way the save the company money. Outsourcing is also used by companies to grow their industry and sell goods cheaper, and faster.

Many people are for outsourcing because it saves the corporations tons of money. Not only does it save corporations money, but people can also have different things from around the world such as wine from France, having foreign cars such as Hondas, Volkswagen, and Audi and the lists goes on. People are also for outsourcing because it has improved efficiency and is known to have great productivity. Lastly, another reason why people are for outsourcing is because it is beneficial and because it helps create allies which will prevent future conflictions among countries.

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Outsourcing is cost efficient but many people are against it. Many people are against it because unemployment will drastically rise in the United States and will leave thousands without employment. This makes it difficult for people to look for jobs because the jobs they were very skilled at is now overseas. Countries that are not as wealthy as the United States will be taken advantage of leaving their economies to be destroyed.

USA –  Whirlpool corporation that originated in the United States and ended up being outsourced globally.

 Country #1: Developing country (India)

Briggs and Straton (a company that specializes in the production of engines) was interested in outsourcing because the labor was at 5% of what it costs them at home and for other reasons that involve profit.

Country #2 Developed country (Japan)

Companies that have outsourced Japan are mostly auto companies and electronic companies. For example, one company is Microsoft, Microsoft outsources Japan because Microsoft believes that it will be cost efficient for them to get cheaper labor and a great productivity.

A barrier that prevents trade is government subsidies which generally aims at promoting economic and social policy, making it easier to produce in foreign countries. There are tariffs available that allow proper taxation to be placed on imports from foreign countries that are outsourced. Not only does taxation apply for imports but there Is also taxation from foreign countries on exports that go out to the United States.

I believe that outsourcing will hinder the nation. The reason why I believe this is because with our economy the way that it is, and unemployment being as low as it is, I believe that companies should take into consideration how outsourcing the company will leave many without employment which are innocent hard working people who work to support a family and their needs. The united states needs to stop thinking about making profits, and think about our economy and how it will improve the lives of their workers.

 

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