Outsourcing Jobs to Foreign Countries
Essay Preview: Outsourcing Jobs to Foreign Countries
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Outsourcing jobs to foreign countries has long seen to be a hindrance to American people when in actuality it can help the economy grow. Outsourcing is a sore subject for the majority of Americans today. Seeing jobs going overseas can be hard pressed to be seen as a good thing, even harder to believe it can help the economy. Looking at the way outsourcing can help everyone puts things in perspective on a global level.
Imagine third world countries poverty stricken and hungry! Outsourcing in these areas helps spark the economy across the globe. By outsourcing jobs here it helps others less fortunate in these types of regions, have more and there by having the ability to spend back, making more jobs available to Americans. Outsourcing has to be looked at as a global process that helps everyone. A number of Americans work abroad for foreign companies as well. As stated by Richard Shryock (2006) “French companies employ approximately 650,000 AmericansFrance employs the third largest number of Americans.” Outsourcing flows both ways by outsourcing from the U.S. to other countries and other countries outsourcing to the U.S. America does lose jobs to outsourcing but also gains some back through the same means.
It is a huge misconception that all of the jobs are moving overseas. Less than 30 percent of the jobs lost to outsourcing were then sent overseas, the Bureau of Labor Statistics of the U.S. Department of Labor reported.”In more than seven out of 10 cases (of job losses due to outsourcing), the work activities were reassigned to places elsewhere in the U.S.,” said the report on mass layoffs for the first three months of 2004.According to the U.S. Department of Labor, unemployment rates have been down over the last few years. With this information, Americans can see that the U.S. does lose some jobs to outsourcing Companies yet still create more jobs than they lose.
A closer examination of the international data reveals not only that U.S. companies are outsourcing abroad but also that foreign companies are outsourcing to the U.S. at a record rate, thus creating high-paying jobs in the U.S. International data from 2004 reveal that U.S. imports of services amounted to $296 billion, but the export of U.S. services was $343 billion — an absolute record — giving the U.S. a balance-of-trade surplus of $47 billion in services. Pellegrino Manfra (2006) cover
Overseas competitors have done cost effective labor that draws companies to use cheaper labor as a means to grow bottom lines, this does not mean they are selling out to the competitors overseas. These are just a means to an end. By expanding the bottom line American business owners can create new jobs in different areas with better salaries. With these new jobs, the workforce will have to keep up with more strenuous work ethic and better educations. Without them, America will fall behind and start losing more.
“People do lose jobs as a result of globalization, and its painful for those who do lose jobs, Bush told a group at the India School of Business in Hyderabad. “But the fundamental question is, how does a government or society react to that?
“And it is basically one of two ways. One is to say losing jobs is painful, therefore lets throw up protectionist walls. And the other is to say losing jobs is painful, so lets make sure people are educated so they can fill the jobs of the 21st century. (Hollon, J) (2006).
With all the growth of technology it has allowed companies to outsource jobs that pertain to non-essential services. Growing technology has had a big impact on all aspects of the job market. Third world countries are jumping on to keep up and getting these jobs, with that U.S. still expand companies to help meet the needs of the growing population. Technology improves each day allowing more and more Americans the opportunity to have independence and work for themselves. These trends are also being blamed on outsourcing and have not been tracked by the government.
These numbers do not represent U.S. farm force or self-employed. With the means today people are moving toward working for themselves. The internet has brought a lot of opportunity to the public in ways