Preview

The Effect of Outsourcing on the U.S. Economy: Are China and India Threats or Opportunities Essay Example

Good Essays
Open Document
Open Document
2413 Words
Grammar
Grammar
Plagiarism
Plagiarism
Writing
Writing
Score
Score
The Effect of Outsourcing on the U.S. Economy: Are China and India Threats or Opportunities Essay Example
The Effect of Outsourcing on the U.S. Economy: Are China and India Threats or Opportunities

The U.S. economy has been negatively affected by Globalization and Outsourcing. The more U.S. based companies continue to outsource jobs, the more risk America takes in allowing other countries to pose a threat to our economy as a whole. Could other countries such as China or India be a threat to the U.S. Economy? With the overwhelming increase of outsourcing jobs, this question has become a valid concern. There are many reasons American companies use to justify outsourcing jobs to other countries instead of keeping them here in America, but the question remains In the long run, will outsourcing cause the U.S. to lose it place as an economic superpower?

Globalization and Continued Outsourcing

The literal definition of globalization is “growth to a global or worldwide scale.” (wordnet.princeton.edu 2006). Often used as a term associated with the economy, Globalization refers to the integration of national economies into international economies through trade, foreign direct investment, capital, migration and the spread of technology. Globalization which was expected to benefit the U.S. economy is now posing a threat. Such issues as the increase of the trade deficit as well as the increase of job losses have affected the U.S. economy as a whole. U.S. companies such as IBM, Ford Motor, GE Capital, Gateway and United Airlines have sent jobs overseas and have chosen to employ cheap labor instead of keeping the jobs in America for American workers. What are the opportunities and threats that are of relative importance to the U.S. economy? According to Tokic (2005), an opportunity is defined as an intermediate to long-term development or trend that potentially increases corporate profitability, and consequently boosts the stock market. When we think about where the growth opportunities present themselves, two countries come to mind; China and India.

You May Also Find These Documents Helpful

  • Good Essays

    Outsourcing has become popular with major companies since the 90s. In 2011, “Wall Street reported major companies cut their workforce by 2.9 million people in one decade and hired 2.4 million people oversees.” (Jilani, 2012). The reason major companies outsource jobs because it is cost saving and allows companies to pay lower wages in countries outside of the United States. Forcing limitation on companies outsourcing, will create more jobs in the United States. In addition, more jobs mean more people are working. Taxes paid from these people, will go back to the government, and help the budget.…

    • 1078 Words
    • 5 Pages
    Good Essays
  • Satisfactory Essays

    Outsourcing could potentially hinder a stable American economy’s workforce. Despite that prices for goods and products…

    • 412 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Outsourced Jobs in America Outsourcing has continued to grow at an astounding rate over the last fifteen rates. The similarities between job outsourcing and The Grapes of Wrath extend much deeper than what may be seen at the surface. Similar to how migrants fled to California due to fake advertising of jobs in newspapers, many immigrants migrate to America in search of a better job, only to find that the jobs that they are seeking are being transferred to developing countries. Over the last seven years, over three million jobs in the country have been moved to developing countries which can provide a more skilled workforce for a lower wage than America.…

    • 1049 Words
    • 5 Pages
    Good Essays
  • Powerful Essays

    That Use to Be Us

    • 2581 Words
    • 11 Pages

    References: Bertho, M., Crawford, B., & Fogarty, E. A. (2008). The impact of globalization on the United States. Westport, Conn.: Praeger.…

    • 2581 Words
    • 11 Pages
    Powerful Essays
  • Powerful Essays

    As the problem of job outsourcing becomes more of an issue in politics, elected officials like the President and Congress will no longer be able to ignore the dilemma. The war in Iraq has been at the forefront of the presidential race but the importance of outsourcing American jobs seems to have been slightly overshadowed. If the issue of outsourcing is not watched carefully and a definitive plan hammered out, a trickling down of negative effects may occur within the U.S. economy. However, there is a polarized opinion on the effects of this "phenomenon".…

    • 1056 Words
    • 5 Pages
    Powerful Essays
  • Good Essays

    As an American citizen, I initially believe that outsourcing is a terrible thing for America’s economy. When you hear about American jobs closing to be moved over overseas, it makes you worry about our already troubled economy. You become worried about all the employees who have been removed from their jobs. The government will provide a limited supply of unemployment pay, but they cannot guarantee all displaced employees’ their jobs back.…

    • 305 Words
    • 2 Pages
    Good Essays
  • Good Essays

    30 little turtles

    • 830 Words
    • 4 Pages

    What is outsourcing? Outsourcing is a practice used by many different companies to reduce costs by transferring portions of work to outside supplies rather than completing it internally. You may be asking yourself “why should I care”, “how does this have anything to do with me”. Well when you buy a new pre-paid cell phone, in order to activate it you must call the one eight hundred number on the back, should you be surprised to know that most of the respondent’s is of Indian ethnicity? In fact almost all of our technological based problems are solved by other ethnic based community’s. How does outsourcing affect the American people? Should we as a country support it?…

    • 830 Words
    • 4 Pages
    Good Essays
  • Good Essays

    Outsourcing in America

    • 1347 Words
    • 4 Pages

    Outsourcing is weakening the nation’s job-creation engine, and leaving thousands of newly unemployed workers here in the United States in search of work. With the number of companies outsourcing jobs continually increasing, it becomes a much larger issue for the U.S. workforce to find a job when so many are being outsourced overseas. Unfortunately this trend is likely to continue to cause serious harm in the United States if it continues to go unmonitored. Foreign and American governments have contributed to the problems caused by outsourcing in a number of ways. Some of the more visible ways are a lack of monitoring and data gathering, ceasing to enforce any pressure or penalties upon companies outsourcing jobs, and U.S. jobs being outsourced due to foreign incentives. These three issues are a large contributing factor to the current problem of outsourcing in the United States and its negative impact on the American workforce.…

    • 1347 Words
    • 4 Pages
    Good Essays
  • Powerful Essays

    Essay Offshoring

    • 1893 Words
    • 8 Pages

    These days we hear a lot about offshoring. But offshoring has become a hot topic that it was even discussed in the recent presidential debate. There are so many questions come to us when we talk about outsourcing. Sending jobs to countries who don’t ask for much is easier than paying Americans who ask for what will get them through the day. Workers in countries such as china and India are hard workers. Many people do not realize that outsourced jobs leave many Americans unemployed. Another problem is that we have more than Americans relying on us. Outsourcing affects everyone. That’s why many young Americans are going to other fields that are the less likely to be offshored. Information Technology jobs overseas also run a security and privacy risk. Risks such as these cause a negative impact on outsourcing.…

    • 1893 Words
    • 8 Pages
    Powerful Essays
  • Better Essays

    Chithelen, I. (2004). Outsourcing to India: Causes, Reaction and Prospects. Economic and Political Weekly, 1022-1024.…

    • 2431 Words
    • 10 Pages
    Better Essays
  • Good Essays

    American Outsourcing

    • 1669 Words
    • 7 Pages

    Outsourcing jobs is a major epidemic facing the American people today, because it is leading to higher and higher unemployment. Many critics argue that outsourcing benefits the American majority because it makes the products purchased at home in America a lot cheaper than they would be. These cheaper prices are because the cost to produce the items is lower since the jobs were outsourced. “Cheaper prices for consumers goods is often the first thing cited when defending outsourcing” (Hargreaves). However, most people don’t see what the negative effects of outsourcing are. Katherine Paralta, part of U.S. News, acknowledges that many Americans lose their jobs from outsourcing, she later even went on to say that as many as “3.2 million Americans have lost their jobs since 2001” (Peralta). These people are then in need of jobs to support themselves and many cannot find these jobs. What Peralta is saying is that when companies outsource their productions to cheaper areas, they are laying off the American workers which causes these people to desperately need money…

    • 1669 Words
    • 7 Pages
    Good Essays
  • Powerful Essays

    In many circumstances a product can be made here in the United States by a worker making fifteen dollars an hour plus benefits; or companies can find the same product somewhere else made where a worker is paid four dollars an hour, with no benefits. Which one would be more of a logical move? After all, it is the bottom line companies are chasing here. Why wouldn’t companies want to take jobs overseas? Which leads us to what outsourcing really does to the U.S. economy. Is it really hurting the economy? If so, why are so many companies considering offshore outsourcing to be beneficial? What should we as students do to prepare for the future if outsourcing continues to grow? Below will contain an analysis of the advantages, and…

    • 3058 Words
    • 88 Pages
    Powerful Essays
  • Powerful Essays

    The US Economy

    • 1680 Words
    • 7 Pages

    The US now imports more than we export. So in other words we are not a self-sustaining country like we used to be. We are not investing our money in America instead we are sending it overseas. We have become too dependent on foreign countries and cheap goods, thus making our economy weak. We could soon find our economy being taken over by a foreign interest. Due to the destruction of American factories, I don’t think we would have the infrastructure to mass produce goods like we used to. Ironically if this practice continues it will not only hurt the average American citizen, but the CEO’s of the big companies, who control most of the wealth. With many more jobs overseas the US economy has faltered. Unfortunately this practice is neither controlled nor looked down upon. Instead it is encouraged and seen as innovation in business. In some cases it is even rewarded! For example, the late Steve Jobs, co-founder of apple and neXT, is seen as one of the greatest American businessmen of our time. Many do not realize that Steve Jobs was one of the first CEO’s to outsource American jobs to China. Instead we are given this illusion that he greatly helped the American economy. Even when he was encouraged by President Obama to manufacture iPads in the US he refused, to which he replied “the jobs aren’t coming back”12. Steve Jobs is just one of many businessmen…

    • 1680 Words
    • 7 Pages
    Powerful Essays
  • Satisfactory Essays

    Does Galaxywire.net have a moral duty to keep its promise to stay in Green Fork so long as it can do so profitably? Why or why not? If so, is accepting even the first offer from the city and workers too much to ask?…

    • 294 Words
    • 2 Pages
    Satisfactory Essays
  • Good Essays

    Globalization is also a hot subject when talking about the Americanization. What are the threats and possibilities that globalization holds for us and the rest of the world?…

    • 826 Words
    • 4 Pages
    Good Essays