Maureen W. McDevitt
November 18, 2014
Â
               OUTSOURCING TO A FOREIGN COUNTY
     Outsourcing in the United States has obviously enriched the heads of massive corporations. Companies "Outsource" because that is where the sales are. Today's technology has allowed the overseas workforce to grow by 39 percent between 2005 and 2010, compared to a 7.8 percent United States increase. The fastest growing markets are outside the United States. Outsourcing has many advantages such as low cost of labor and tax savings, which means more income for the company.  The purpose of any company is to make money. For workers and consumers, outsourcing creates a multitude of problems for shipping, communication, and culture. The biggest setback might be the loss in quality.
     There are several reasons why many United States companies open stores, build factories and hire people overseas. The main reason given for outsourcing is to remain competitive by cutting costs, especially wages. These companies are able to produce their products at lower costs, and then pass these savings onto their consumers. It not only makes their consumer happy, but also keeps their business competitive. No one complained when gasoline prices recently fell, even though much of our oil is produced overseas. The public was elated because lower gas prices means more money left over to spend on other wants and needs. Another reason is that these companies pay far less than the nominal United States tax rate due to various tax credits and incentives that push income overseas. Who likes to pay taxes? Ultimately, these taxes would fall onto the consumers.  It's simply a matter of market competition, and when the means are so available, they are essentially unavoidable. By leaving our businesses with no protection and giving out full access to our markets, it makes no sense to produce in the United States.
     Technological developments have increased the ease and speed of international communication and travel. In 1990, the Internet, worldwide web or also known as the "super highway" began to revolutionize the workplace. With high-speed telecommunications, workers can complete many jobs on a computer anywhere, even overseas. The Internet gives us a better understanding of many opportunities which leads to increases in international trade and investment, and the number of businesses operating across national borders.  These increases mean that the economies around the world are more closely integrated. The Internet opens the doors locally and internationally to each and every one of us. A consumer can easily surf the web and purchase a product from the United States, as well as from China with only a click on their computer.
      Today, some of the world's largest companies and biggest employers are the product of this outsourcing trend: IBM, Nike, Ford, McDonald's, Apple.
      The Obama administration has proposed policies to encourage companies to move back to the United States, while closing corporate tax loopholes that make it easier for multinationals to pay limited taxes on their overseas operations. The Duke survey found that "only four percent (4%) of large companies had future plans for relocating jobs back to the United States." The Duke survey does not identify the reasons for this reluctance to bring these jobs back to our country, but a key factor could be the United States tax code, which, "rewards companies for making investments abroad, and leads to them shifting offices, factories, and jobs abroad even if similar investments in the United States would be more profitable absent tax considerations."Â
           We must make it profitable for United States companies to employ workers in this country and produce goods. We should not have to worry about quality jobs leaving the United States and rely on foreign companies to provide employment. We need to control foreign trade, as other nations are doing. By looking at both sides of the equation, it's obvious that while we are gaining short-term profit and a few jobs, we are forfeiting our manufacturing and industrial base. Eventually, we'll be left with few to no American-owned factories, leaving he nation completely dependent on other countries for work, resources and a fair standard of living.
           These are the economic characteristics of a third-world country. These are the chains that our forefathers fought to shake off more than 200 years ago. That is the vision of the United States that no American is comfortable imagining
          Â
References:
http://www.forbes.com
http://economyincrisis.org
http://www.crf-usa.org
Outsourcing: What's the true impact? Counting jobs is only part of the answer, by: Steven Pearlstein, July 1, 2012
November 18, 2014
Â
               OUTSOURCING TO A FOREIGN COUNTY
     Outsourcing in the United States has obviously enriched the heads of massive corporations. Companies "Outsource" because that is where the sales are. Today's technology has allowed the overseas workforce to grow by 39 percent between 2005 and 2010, compared to a 7.8 percent United States increase. The fastest growing markets are outside the United States. Outsourcing has many advantages such as low cost of labor and tax savings, which means more income for the company.  The purpose of any company is to make money. For workers and consumers, outsourcing creates a multitude of problems for shipping, communication, and culture. The biggest setback might be the loss in quality.
     There are several reasons why many United States companies open stores, build factories and hire people overseas. The main reason given for outsourcing is to remain competitive by cutting costs, especially wages. These companies are able to produce their products at lower costs, and then pass these savings onto their consumers. It not only makes their consumer happy, but also keeps their business competitive. No one complained when gasoline prices recently fell, even though much of our oil is produced overseas. The public was elated because lower gas prices means more money left over to spend on other wants and needs. Another reason is that these companies pay far less than the nominal United States tax rate due to various tax credits and incentives that push income overseas. Who likes to pay taxes? Ultimately, these taxes would fall onto the consumers.  It's simply a matter of market competition, and when the means are so available, they are essentially unavoidable. By leaving our businesses with no protection and giving out full access to our markets, it makes no sense to produce in the United States.
     Technological developments have increased the ease and speed of international communication and travel. In 1990, the Internet, worldwide web or also known as the "super highway" began to revolutionize the workplace. With high-speed telecommunications, workers can complete many jobs on a computer anywhere, even overseas. The Internet gives us a better understanding of many opportunities which leads to increases in international trade and investment, and the number of businesses operating across national borders.  These increases mean that the economies around the world are more closely integrated. The Internet opens the doors locally and internationally to each and every one of us. A consumer can easily surf the web and purchase a product from the United States, as well as from China with only a click on their computer.
      Today, some of the world's largest companies and biggest employers are the product of this outsourcing trend: IBM, Nike, Ford, McDonald's, Apple.
      The Obama administration has proposed policies to encourage companies to move back to the United States, while closing corporate tax loopholes that make it easier for multinationals to pay limited taxes on their overseas operations. The Duke survey found that "only four percent (4%) of large companies had future plans for relocating jobs back to the United States." The Duke survey does not identify the reasons for this reluctance to bring these jobs back to our country, but a key factor could be the United States tax code, which, "rewards companies for making investments abroad, and leads to them shifting offices, factories, and jobs abroad even if similar investments in the United States would be more profitable absent tax considerations."Â
           We must make it profitable for United States companies to employ workers in this country and produce goods. We should not have to worry about quality jobs leaving the United States and rely on foreign companies to provide employment. We need to control foreign trade, as other nations are doing. By looking at both sides of the equation, it's obvious that while we are gaining short-term profit and a few jobs, we are forfeiting our manufacturing and industrial base. Eventually, we'll be left with few to no American-owned factories, leaving he nation completely dependent on other countries for work, resources and a fair standard of living.
           These are the economic characteristics of a third-world country. These are the chains that our forefathers fought to shake off more than 200 years ago. That is the vision of the United States that no American is comfortable imagining
          Â
References:
http://www.forbes.com
http://economyincrisis.org
http://www.crf-usa.org
Outsourcing: What's the true impact? Counting jobs is only part of the answer, by: Steven Pearlstein, July 1, 2012
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