Outsourcing

[Gestapo Hunter]

With the economy in a full downward spiral like a blackhawk helicopter taking a RPG,many companies are cutting cost by out sourcing(off shoring). The issue is that many low class to middle class citizen depends on these factory production line jobs.

Now here the big questions...

Do you believe out sourcing provide any benefit to the country or the economy?
Who should be blamed for these action? The worker,corporation,or the government?
Should outsourcing be blamed for the lack of jobs?
How does outsourcing affect you?

 

[Sevre]

The decision to outsource is the corporations decision so it's their fault.

 

[Gestapo Hunter]

The decision to outsource is the corporations decision so it's their fault.

Some would say its the worker(actually Union)fault for demanding to much from their employer, or it could be the government fault for allowing the corporation to take such action.

 

[munkyforce]

If the manufacturing sector of the economy is inefficient then everyone winds up paying higher prices (including the working/middle class)for those manufactured goods. In the long run those working in industries that are outsourced would be better off being retrained in areas where the economy has a comparitve advantage, rather than being subsidised by everyone else.

 

[teisjm]

It won't help the economy or country, internationally it will help some other country who the job is outsourced to, but the company is not helping it's country.

the financial crisis is becasue of greedy scumbags (not all bankers) who worked in the banking sector and took huge risks so they would make good money themselves. people who took up loans they should've been smart enough to know that they were never going to be able to pay back.

if they outsource to other countriwes they're partly to blame for less jobs in their own countries, but the company has to run it's own buissines, and the outsourcing helps elsewhere in the world.

It hasn't affected me, you can't hire someone halfway across the globe to sit at a factory in Denmark and watch TV

 

[sneakypenguin]

If the manufacturing sector of the economy is inefficient then everyone winds up paying higher prices (including the working/middle class)for those manufactured goods. In the long run those working in industries that are outsourced would be better off being retrained in areas where the economy has a comparitve advantage, rather than being subsidised by everyone else.

*high five*

Amen keeping useless jobs here just for the sake of employment reminds me of the chinesse strategy of full unemployment by menial task.

 

[Fulax]

If the manufacturing sector of the economy is inefficient then everyone winds up paying higher prices (including the working/middle class)for those manufactured goods. In the long run those working in industries that are outsourced would be better off being retrained in areas where the economy has a comparitve advantage, rather than being subsidised by everyone else.

If the manufacturing sector of the economy is inefficient then everyone winds up paying higher prices (including the working/middle class)for those manufactured goods. In the long run those working in industries that are outsourced would be better off being retrained in areas where the economy has a comparitve advantage, rather than being subsidised by everyone else.

*high five*

Amen keeping useless jobs here just for the sake of employment reminds me of the chinesse strategy of full unemployment by menial task.

*high five*

I'm with these guys.

 

[dwightsteel]

Dude. Outsourcing is not a new problem, and as with all economic principles and practices, it has benefits and it has it's downfalls.

It's great for developing third world countries, giving them work where there is none, and getting some currency circulating to help boost their economy. It's great for the companies, who get to pay substantially less to an incredibly willing workforce. It also gives said companies the benefit of looking benevolent by "helping those less fortunate," an image you'll find many corporations touting so as not to look like the guys who are...

Taking away jobs from the people of the country where the company is located. This is of course the big drawback. No matter how much publicity they try to inject into making outsourcing look like a world wide benefit, the people of the host country are losing out, and it makes them go *grrr*. Because the truth is, that no matter how much people complain about how the company they work for is screwing them over, they all at some point also realize that someone in india could be doing their job for less than half the price. A no win situation.

 

[IHaveNoCoolness]

I'm not an economist, but heres my 2 cents.

If the business fails, collapses and has to completely shut down, is that better for the country than them outsourcing a portion of the labour?

Outsourcing is a huge pain especially for the working class factory workers, call center operators, etc of the world... but we're in a recession though and these corporations need to find ways to reduce costs to remain competitive in the market otherwise they will simply fail.

As far as whether it's good or bad for the economy of a country, I would say it's good. Global trade stimulates spending and increases cash flow world round helping us spend our way out of the recession.

I don't think anyone should be blamed, it's part of free trade around the world. Americans want cheap goods from China, and the Chinese provide cheap labour and these products... it's really a win-win. America is all on board for free trade accept when there is a negative affect for them in some ways... Canada can't possibly compete with the quaternary sector in the silicon valley or Japanese electronic manufacturers, but the US can't possibly compete with our Oil exports or Softwood lumber exports. It's a free change of services that stimulates these economies. In particular, the United States with it's free market economy should be the first to see the irony in complaining about outsourcing labour. If someone can do if for cheaper, why wouldn't you use them? Corporations are international... they don't think locally and shouldn't... Joe Average buying at WalMart is really supporting the idea of free markets and outsourcing... by going with the place that does the most free trade worldwide and using the cheapest labour around the world... He's basically supporting it. So when he loses his job to an Japanese auto manufacturer... he really has himself to blame for shopping at Wal-Mart and other big box stores instead supporting his local deli.

Outsourcing may be part of the reason why unemployment is up in Canada, the US, etc. but it's not the reason. We're in a recession. People are spending less, starting less businesses and borrowing less money from the banks. There's no money being circulated so there is no money to pay people. It's just part of the recession... with government spending and programs though, we'll bounce outta this in a couple years or less. It's just part of the economica cycle.

Many of my friends have lost their jobs to outsourcing, but it's really the recession that's lost them their jobs, not the outsourcing.

 

[NeutralDrow]

The result of a company lowering their production cost by outsourcing means lower prices on the products (ideally, but if that's not true, outsourcing isn't the problem). So, to answer the questions at the top...

1. Yes. Lower prices on products for consumers.
2. The corporations are the ones who make the decision.
3. Probably not even a significant amount.
4. Well, I like to buy things, so...

 

[IHaveNoCoolness]

Exactly. It's just

The result of a company lowering their production cost by outsourcing means lower prices on the products (ideally, but if that's not true, outsourcing isn't the problem). So, to answer the questions at the top...

1. Yes. Lower prices on products for consumers.
2. The corporations are the ones who make the decision.
3. Probably not even a significant amount.
4. Well, I like to buy things, so...

Exactly. It's part of the free market and cheap consumer goods that everyone is so fond of.

*braces himself for the flames he's about to receive*

If you don't like outsourcing, then you might as well be a communist. Looking out for your community... Abolishing free-trade... Really. It's part of free trade. Deal with it. Free trade has it's ups and downs. Here in Canada we suffer massive "brain-drain". Educated people moving away due to our taxation to places like the states that have a more competitive and lucrative environment for the educated... You don't hear us complaining "the American's are stealing all our doctors!", no, we try and make programs and tax breaks to try and fix the problem.