Employment and Company

Instead of relying only on domestic workers, many companies also outsource some of their labor into foreign markets. This practice can have negative effects on the economy overall, individual businesses can often benefit from this practice. Outsourcing offshore can allow companies to tap into foreign markets and expand their businesses.

Briefly explain why each of these five countries might or might not be a viable option for a new American business venture.

* Labor outsourcing is a good strategy to decrease the labor cost. But it associates with many issues. Once outsourcing is done, the MNC cannot just stay behind. The MNC should carefully supervise on the working conditions, safety, wages, working hours, gender discrimination and human rights violations. If any of these factors going wrong and leads to sweatshop conditions, it directly affect on the reputation of the MNC. If once the name or the brand is blacklisted, it is very hard to repair the damage. Therefore, the risk of outsourcing is high.

1. Should labor practices in another country be a relevant consideration in international trade? Why or why not?

Large corporations such as Nike, Gap, and Reebok and many others from the United States have moved their factories to undeveloped nations; barely pay their employees enough to live on. Countries such as China, Indonesia, and Haiti have readily abundant cheap labor. There should be labor laws or an obligation of respecting workers to provide decent working conditions, fair wages, and safety standards.

Describe at least three potential problems global businesses face when they outsource or subcontract their work to companies in other countries? (e.g., a U.S. sneaker company outsourcing the manufacturing of its sneakers to a separate company in China or Vietnam.)

Outsourcing emerged on the financial arena during the 1980s and has since then been spreading. Outsourcing production was furthered with the process of globalization which provided a new component leading to the strengthening of resources, skill and labor specializations across the world. The process of outsourcing is using the skill and abilities of a third-party to accommodate society on the foundation of labor. As stated earlier, it was during the 1980s that the process kicked off mainly due to the efforts of corporations when they began to hire labor forces across the world. Even though outsourcing has come out from its developing stages, there are still following effects on the US economy.

1. Why is outsourcing such an attractive way for firms to tap into foreign markets? What are the risks of foreign outsourcing?

* Examine the manner in which the firm’s decision to outsource offshore is impacted by foreign exchange. Determine whether or not it matters where the company outsources offshore. Provide a rationale for your response.

There are too many cases in which workers across the globe are subjected to horrific working conditions. Because of the laws in place in the United States, manufacturing jobs are not

There are many views with the problem of utilizing sweatshops in developing economies. Many insist that utilizing sweatshops in developing economies composes exploitation. In certain circumstances, this may be true, but not all. It is an ongoing controversy of demolishing sweatshops and changing the laws of labor. Many anti-sweatshop activist supports the idea of demolishing sweatshops. Activist commonly focus on work conditions and low wages causing them to be ill – formed of the economy as a whole. Taking a deeper look into these developing countries, it is with out of doubt that these countries benefit from sweatshops. Sweatshops should not be demolished because the employees are benefited with income, their economy receives growth and

corporations to use cheap overseas labor” my first thoughts were yes because of my personal beliefs. But upon further thought and through discovery, I realized that from a business point of view we as a nation should still help promote economic globalization. In order to do so we need to outsource production and encourage trade. However, because we are fiscally involved in another country’s economy that doesn’t give American corporations the right to implement our laws and standards into other countries’ business practices and laws. Just because we see child labor, unfair wages, and violating overtime as immoral, doesn’t mean that the host county does. However global labor standards need to be unified.

With this being said, why do so many companies choose to partner with these organizations? Many people think that companies are only using sweatshops to decrease their labor cost. Even though this is exactly true, after researching, there are positive benefits to a sweatshop. According to Times Magazine, “sweatshops are only a symptom of poverty, not a cause, and banning them closes off one route out of poverty” (Kristof). Thus, one reason companies choose to work with sweatshops is that they help lift people out of poverty. In addition, after reading Kristof’s article in the Times Magazine, Where Sweatshops Are a Dream, one mother actually hoped her son would be able

Outsourcing manufacturing jobs overseas has the additional benefit of promoting capitalism and free enterprise in many countries that have been run by communism and totalitarianism governments. Many political scientists and economists believe that by increasing economic interdependence with the United States, these foreign nations are more likely to develop into robust democracies and more likely to establish a middle class of their own this fact can be used by corporations such as Nike to justify outsourcing to these countries. [4]

In the past decade the topic of outsourcing has become a heavily debated subject on if it is ethically correct to outsourcing jobs to foreign countries. Outsourcing has become more and more an option for many companies and not just an economic fad. The decision to outsource is a difficult one for any company to make because there are many advantages and disadvantages to consider. The decision to outsource affects many people, communities, and industries so if a corporation decides to outsource they must consider how it will affect human dignity, the common good of the economy, and subsidiary.