The Reasons American Organizations Outsource China Or India?

Currently, Canada is economically heavily dependent on larger economic countries for research and development and new technologies. Canada also has always been dependent on the extraction of its primary products for export to other countries. "As far back as 1963 as much as sixty percent of the manufacturing industry was owned by firms whose head office lay outside the region or in foreign countries" (www.Statisticscanada/local/stateprov/ont.html. October 5, 2001).

Tegan failed to impart proper knowledge of its A/P system to Hrad due to lack of sufficient personnel and expertise in that area, as per the case, only one employee was there (Julia Jones) who was having the functional knowledge of the current system and was solely responsible to interact and review the low level designs (LLDs), which resulted in the backlog of reviews and thus Hrad was not able to iterate as required.

Multinational Corporation - business enterprise with manufacturing, sales, or service subsidiaries in one or more foreign countries, also known as a transnational or international corporation. These corporations originated early in the 20th century and proliferated after World War II.

The question to whether we should buy strictly American made products has been around for a long time many people think it’s a good idea and many think it’s a bad idea. I think that we should buy strictly American made products because if we start making these products our self it could open up more jobs for Americans to fill and it could help to drop the unemployment rate. It has been stated by Roger Simmermaker that “In just the last 10 years the United States has lost out on approximately 2 trillion dollars in cumulative trade deficits with china alone”(Simmermaker 1). That is money that we the Americans could have profited from if we would just make the products ourselves and buy from other

The U.S. economy has seen many hardships within the last decade. The economy has suffered from a recession that is still threatening to cripple some Americans and unemployment has been at an all time high. People have lost homes and jobs and many businesses have gone bankrupt simply trying to survive. However, in the midst of this economic crisis some companies have managed to survive. Many companies, approximately 36% of them, have found a way to avoid economic collapse by cutting costs (Job Outsourcing Statistics, 2014). One of the most popular cost reducing strategies of our time is called outsourcing.

Have you ever thought about those little words in fine print that tell you where a product was made? How about the last time you put tires on your car? Before you made a decision on the purchase did you stop and ask where the tires are made? Probably not! You heard the only words you wanted to hear....good and cheap! When did we stop caring about where a product is made or did we ever? Why would this matter anyway and what importance is of it? Some may argue that free trade and imports give us purchasing power. They believe cheaper goods results in more money in our pocket to buy other goods. That theory is a farce with little to no data to support it. Buying American made supports job growth, the environment and human rights.

Outsourcing is a process in which large corporations move various jobs such as: production of goods, online coding, telemarketing, and human recourses to name a few to foreign countries in order to cut down on employment rates, and raise their profit margin. Moreover, the low amount companies pay overseas employees, lower standard of work environment, cutbacks on various fees that are usually found in the U.S., and much more make outsourcing seem very desirable. However, outsourcing can be argued as favorable, or unfavorable depending on the audience, and their outlook on the issue. I personally side with the viewpoint that outsourcing long term is unfavorable for America. I find this issue very interesting, complex, and large because of the

“Outsourcing refers to the practice of contracting workers outside of a company or business for work duties or services previously performed by company employees or “in-house”. This practice is also often referred to as offshoring due to the increasingly prevalent use of “non-U.S.” service providers for these outsourced duties. However, strictly speaking, outsourcing can and does refer to the use of contracted labor provided by individuals outside of an organization, but still within the U.S.; whereas when these same services are provided outside the U.S., it is both outsourcing and offshoring.”

The purpose of this paper is to analyze and come up with a reasonable conclusion on the effects of outsourcing in America. From overworking, to a decline in the manufacturing sector, a high wealth gap, and finally the contribution of corporate lobbying are prime examples of the by-product that were created by outsourcing. Although free trade is the root of the problem, outsourcing is the most prevalent issue that it has created. Since free trade is now a standard and cannot be eliminated we will look into how outsourcing, since it can still be controlled, has affected America.

What are the true reasons that companies are doing business around the world and outsourcing American jobs to other countries? Mainly, American jobs such as Accountants, Technicians and Programmers are losing their Jobs because of globalization. Most of American jobs are outsource to countries such as China or India, therefore, before this taken place Americans had more of a better stable career path or even more jobs to choose from eventually, times have changes very rapidly due to companies moving American jobs overseas. As stated by many politicans, executives, prominent corporate executives and academics “have argued that we have no choice, that with globalization it’s critical to tap the lower costs and unique skills of labor abroad to

Outsourcing is the process of “hiring foreign workers to do a particular task, as opposed to hiring indigenous workers” (fee.org). Although it may seem like a favorable business approach, it only provides a gain out to large corporations. Since outsourcing is assembled around extensive cooperation’s, it steals from the “mom&pap” stores.

Their current and future existence hinges on how well they can juggle a double edged knife. Manufactures are bargaining chip between consumers and the government. Consumers expect it now and cheap. While government directs a safe workplace, decent wage, and benefits to allow employee to earn a decent living. No mathematical equation will provide an equal solution for all parties. The demands of the government and consumers impose complications for the manufactures. Thus, manufacture options are extremely limited. The best course of action available to manufactures is relocating part of production overseas. Some have chosen to move the entire company. Toyota, a prominent auto maker reproduces certain parts at their overseas plant. They have determined it is more cost effective to pay the import fee than make the parts in the United States. Currently, the U.S. imports exceed our exports. Truly, the U.S. is not operating under a positive economic strategy. A quick glance at the various items American consumers own will show majority of products are made in China, Indonesia, Japan, and countless third world countries. Supply and demand is alive and well in America. Over the past 60 years the made in the U.S.A. logo is less evident. Americans remain focused on availability and cost of owning the latest gadget. They fail to care where the products are made. Consumers

China is one of our biggest labor competitors. The reason many US companies go to China for outsourcing is again, because of their workforce’s willingness to operate at low costs. Michael Zimmerman describes this as a disparity in worker “tolerance”. Where the low wages found in China are “far lower than U.S.

The point is well taken, but Holland gives it excessive weight. Like their brethren in Detroit and Pittsburgh, domestic tool-makersin the 1970s were too complacent when imports seized the lowerend of the product line. The conservatism that had for years servedthem in their cyclical industry left them ill-prepared for change. Evennow some of the largest U.S. tool-makers are struggling to restructure. Blame the government, yes. But blame the industry, too.

US Tech is considering discontinue the cooperation with its primary product supplier: TaiSource. The two main reasons that drive the company for doing so are (1) reducing cost and broaden the market by collaborating with a new Chinese supplier; (2) eliminating the threat of a future strong competitor who knows almost everything about US Tech’s products. After carefully examining the entire situation, we hold that US Tech should find an alternative Chinese supplier to cooperate while keeping the relationship with TaiSource.