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If we continue outsourcing jobs to countries that have lower labor costs won't this eventually put a tremendous negative drain on the US economy by affecting our labor market.?
Wiki User
∙ 11y ago
I feel that the answer is YES.
The economy ISN'T going to get better with more people being unemployed. But it extends much further into what I call a chain reaction. If you are laid off, you will only buy the essentials when your money is tight; food, water, etc. You won't buy items like DVDs, Video Games, etc., since they are non-essential to your survival. This means that the business that sells these goods now has a drop in sales, so they lay off people, who in turn can't buy items from other businesses, who in turn lay off even more people. See a pattern here?
And for the jobs that may be available, they will also be very low paying and low to no benefit jobs, most of which wouldn't sustain anyone, especially someone trying to pay for their home, the utilities, and buy needed items such as food, etc.
Answerpunch
Wiki User
∙ 11y ago
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Which results from outsourcing jobs from the US to other countries?
Lower wages for U.S workers.
What practice used by businesses in the 1990 changed U.S. production?
outsourcing to foreign countries
How is outsourcing an example of globalization?
Outsourcing removes boundaries. It used to be that for someone to render services they would need to be in the same location as the client. Now even if they are in different countries an outsourcer can render services to the client.
What sentences offers the best argument that outsourcing jobs can damage health in developing countries?
Workers may be exposed to toxic materials in countries that lack safety regulations.
What problems has globalization world trade caused?
Outsourcing -using other countries to cut costs where their economy benefits instead of ours
What countries do infrastructure outsourcing?
Quite a few of the financially better off countries do. The USA is one that does almost 30% of its outsourcing to other countries.
How is outsourcing affecting the job market?
Today's need to cut cost and produce twice as effective workers have resulted in a balance shift, of a number of jobs from first world countries being outsourced to poorer nations. While it is not fair to blame outsourcing for the loss of jobs of many, outsourcing has proven to be a vital tool in making sure businesses survive in these uncertain times.
Will outsourcing ever go away?
Not really. Although countries can pass laws that will minimize offshore outsourcing or outsourcing of work to developing countries, one cannot simply eradicate the practice as businesses are on the search for a cheaper alternative that works.
What is it called when U.S. companies have products manufactured by foreign countries?
outsourcing
What is it called to hire workers in other countries to do a set of jobs?
Outsourcing
What results from outsourcing from the US to other countries?
... Lower wages for U.S. workers
In which year outsourcing was started in India?
Outsourcing started way back in the 1700s. Manufacturers started transferring the goods and management of goods to countries with cheaper labor.
What are your thoughts on outsourcing?
Outsourcing, basically, is the contracting of a company to another company to do minor functions so that they can concentrate on their core activity. Today, outsourcing is the most used technique of IT companies to gain more profit and have an effective goods and services rendered with their clients. Most outsourcing companies outsource in other countries because of the low cost that the other countries demand which at the same time have highly skilled manpower.
Which results from outsourcing jobs from the US to other countries?
Lower wages for U.S workers.
What has led to rise in sweatshops in foreign countries?
The rise in sweatshops in foreign countries can be attributed to factors such as globalization, low labor costs, weak labor laws, and limited enforcement of regulations. Companies seeking to cut costs often take advantage of these conditions to outsource production to countries with cheaper labor, leading to the proliferation of sweatshops.
What practice used by businesses in the 1990 changed U.S. production?
outsourcing to foreign countries
What is the beneficial effect of outsourcing projects?
By outsourcing a job, you can get the same done at a much cheaper price,thereby reaping the benefit of cost reduction. In fact, in developed countries, where the overhead cost,wages are too high, outsourcing projects and get them done from third world countries like India, China have become a taboo inspite vehement protests from sons of the soil laborers/employees of those countries.
