Because our economy has cut out manufacturing in order to specify on service, research and innovation, we have lost a significant amount of business and profit from the manufacturing industry. The proponents of this innovation-only economic model delude themselves if they believe that high-tech manufacturing is of little or no value. We live in a world of things - from cars and cutlery to computers and cell phones - and somebody still has to make them. And if the United States is not making the advanced technology products it needs, obviously it is buying them from countries that do. This explains why the $30 billion trade surplus in high-tech products that the United States enjoyed 10 years ago has become a $56 billion deficit. But the problem really does not stop there. This deficit created has a two fold problem because there is less money in the United States, people can not buy as much as they would be able to if we still had a manufacturing sector. On average, lower class people are unable to attain the same type of income they would be able to if there was a manufacturing sector. This prevents our products and services from reaching lower class citizens. In the service industry it takes a college degree more often then not to become financially well off and the lower classes are unable to beat this cycle. .
Outsourcing involves moving a job from one place to another in order to save money. Recently, in America, large companies have been hiring workers in second and third world countries because the cost of labor is much less expensive in areas outside of America. Although this saves large corporations money on labor, its impact on the United States economy is devastating. Among the many problems that outsourcing creates is the tax issue. Currently, there are approximately $400-600 billion dollars stashed in overseas accounts by American companies. These monies have accumulated over the years as a result of an American law that allows corporations to "defer" the payment of taxes on money made outside the United States.
Job Outsourcing More and more American white-collar jobs are being filled or replaced by non-Americans. Where does this leave the American workers? Is this a good thing or a bad thing? About 20 years ago many people lost their auto and manufacturing jobs to outsourcing. This was first believ...
Outsourcing is becoming an increasingly popular alternative for worldwide businesses. ... " In other words, the outsourcing business is starting to grow in terms of geographical scope but also along the lines of different businesses. ... Additionally, there have been over 200,000 more jobs lost because of outsourcing. ... In spite of the popularity of IT roles which are one of the main relationships with the word outsourcing, there are many other business duties which can be outsourcing. ... Although businesses that participate in outsourcing stand up for their choice, there are many stro...
Is the outsourcing of American jobs a good or bad idea? ... So you could see it works out well for Business owners, but what about the thousands of Americans who lose their jobs in the process? ... Bringing jobs back into the U.S may help the unemployment rate, but if goods or more expensive due to higher labor rates then companies might go out of business. ... Outsourcing isn't very good for business's either. ... Outsourcing must be stopped to bring back our jobs that belong in America....
Outsourcing has given American companies greater cost competitiveness. ... Outsourcing the manufacturing process also enables businesses to take full advantage of the economies of scale. Outsourcing production to an offshore manufacturer, which can keep factories working full-time 24 hours a day by producing goods for a variety of businesses, can significantly reduce costs, especially if the manufacturer is located in a low wage country. ... Outsourcing and manufacturing provide businesses with many benefits include: - Good international relationships - Access to low wages - Enlarge markets ...
Those that are against global outsourcing only have a few claims one being the loss of American jobs. ... Outsourcing is simply the transfer of operational responsibility of either business process or infrastructure management to an external provider. Today outsourcing has become a standard business practice across every industry. ... The recent economic crisis worldwide has brought outsourcing to the forefront as a way of reducing cost and better shaping business for long-term competitive advantage. ... Outsourcing gives greater exposure around the globe to form new partnerships and expand bu...
Evidence to confirm this argument are easy to find, for example: 1) Business Week quoted a Zogby International poll from 2007 that stated that 71% of Americans believe that outsourcing jobs overseas hurts the U.S. economy, and 62% say the U.S. government should tax or legislate to try to stop the job loss. ... Over 1.3 million additional jobs will disappear by 2014, the Hackett Group found, with outsourcing becoming a larger factor in the job loss each year. ... Another argument against outsourcing is security issues around key business services being outsourced. ... Although service/factory j...
Ericsson is always trying to reduce costs in different areas of business, this is including, the supply chain so as to save money and focus on Research and development. ... Exel has provided a flexible service to Ericsson which has resulted in cost saving and made Ericsson concentrate on its core businesses. Before Ericsson has to handle the warehouse operation in-house but it was not the core competencies of the business. Another advantage of outsourcing is the reduction of the need to invest in non-core business assets such as warehousing and carriers. ... If the service is outsourced, the m...
Ericsson is always trying to reduce costs in different areas of business, this is including, the supply chain so as to save money and focus on Research and development. ... Exel has provided a flexible service to Ericsson which has resulted in cost saving and made Ericsson concentrate on its core businesses. Before Ericsson has to handle the warehouse operation in-house but it was not the core competencies of the business. Another advantage of outsourcing is the reduction of the need to invest in non-core business assets such as warehousing and carriers. ... If the service is outsourced, the m...
There are still many major businesses that are planning on offshore outsourcing. ... Many businesses consider offshore outsourcing for one major reason. ... Previously offshore outsourcing revolved mainly around customer service jobs, however, now many businesses are moving towards outsourcing more advanced jobs. ... Another significant advantage is if customer service jobs are eliminated from the home country, the company can concentrate on improving the prime business functions. ... Also, when making any decisions regarding the business, consideration will have to be taken...
