WHY AMERICAN BUSINESS HAVE GONE OVERSEAS.
Most business in United States like Delta, City Bank, Sprint, IBM, Chase, and Pepsi have globalize their services out side their own locations, by using workers from outside their company, or buying supplies, parts, etc. from another companies or countries, instead of producing them themselves. Outsourcing is the smartest way in business to create a higher profit. Thus, the primary beneficiates are owners and working class of foreign countries.
Business don't have reasons to spend high amounts of money-dollars to buy supplies or pay workers in USA when they can acquire them for less in India and South America. If the same product with the same quality can be found in different countries for a fraction of the cost, I do not see any reason why companies would not want to save from 30% to 50 % on the cost of goods and administrative expenses. If the pay less money for rent, salaries, and utilities companies" savings could be use to pay other expenses like shipping and handing of the goods to their point destination of sale. Even, some companies claim that their savings are pasted on to costumers. In this way, owners will obtain immediate economic gains for the company, Usually trough savings. Because they are bringing in outside help and can cut back on fixed salaries. .
Workers get paid in their country" currency, whichever country might be. Companies like Nike have chosen India to manufacture its products for its lower wages/salaries rates in contrast with USA; also, India has a very large English speaking population that makes companies" globalization easier and faster. Language is not an issue to companies to communicate with employees. Another advantage of outsourcing is that American laws cannot be applied in countries like India. Instead, companies must follow the foreign country's laws. Therefore, workers will not be cover by any law from the labor department or received any benefit from the United States, Which from my point of view, helps the company to save too, as expenses are decreased and owner's equity is increased.
