5.05 Economics: Should Free Trade be a Goal?
5.05 Economics Should Free Trade Be A Goal - Honors
A large portion of people are against outsourcing for the reason that it can lead to increases in unemployment in the country, while foreigners are offered employment instead. This is because it is less expensive for companies to hire people in other countries to perform a job than it is to pay someone in America that will give the same labor. Americans are paid more for a job than others in developing countries as the cost of living in the US is higher. Those in support of outsourcing believe that this practice will benefit the economy in the future. This belief is housed on the concept that with more successful foreign countries, there will be more exports sold from the US.
China is a country that has been in development for the past few years. One of China’s main contributors to its growth is the United States’ companies that have stationed factories within China to avoid the higher costs of paying Americans for labor. Prince Industries is an example of a metal parts manufacturer that has outsourced to China for lower costs and thus higher profits. Companies also outsource to developed countries such as Hong Kong. Some of these companies would include: Microsoft, Nokia, Coca-Cola, Intel, and Walt Disney. Hong Kong has been outsourced to because its legal systems are preferable to China’s as well its as low cost tariffs towards foreign countries. The position of the island is ideal as well in the center of the Asia-Pacific land mass.
American companies can be stopped outsourcing by barriers set up by the government. These can exist in the form of various taxes and fees that are required in order to outsource production. These fees act as a great deterrence as they make the companies pay more than they would if they do not perform any outsourcing, and keep production within the country.
Outsourcing could potentially hinder a stable American economy’s workforce. Despite that prices for goods and products
A large portion of people are against outsourcing for the reason that it can lead to increases in unemployment in the country, while foreigners are offered employment instead. This is because it is less expensive for companies to hire people in other countries to perform a job than it is to pay someone in America that will give the same labor. Americans are paid more for a job than others in developing countries as the cost of living in the US is higher. Those in support of outsourcing believe that this practice will benefit the economy in the future. This belief is housed on the concept that with more successful foreign countries, there will be more exports sold from the US.
China is a country that has been in development for the past few years. One of China’s main contributors to its growth is the United States’ companies that have stationed factories within China to avoid the higher costs of paying Americans for labor. Prince Industries is an example of a metal parts manufacturer that has outsourced to China for lower costs and thus higher profits. Companies also outsource to developed countries such as Hong Kong. Some of these companies would include: Microsoft, Nokia, Coca-Cola, Intel, and Walt Disney. Hong Kong has been outsourced to because its legal systems are preferable to China’s as well its as low cost tariffs towards foreign countries. The position of the island is ideal as well in the center of the Asia-Pacific land mass.
American companies can be stopped outsourcing by barriers set up by the government. These can exist in the form of various taxes and fees that are required in order to outsource production. These fees act as a great deterrence as they make the companies pay more than they would if they do not perform any outsourcing, and keep production within the country.
Outsourcing could potentially hinder a stable American economy’s workforce. Despite that prices for goods and products