Global Managerial Economics Paper

Name
Professor
Subject
Date
Global Managerial Economics
The small and medium-sized enterprises (SMEs) form a crucial part of the U.S. economy. The SMEs create the most jobs in the country; they target the ordinary Americans for employment thus making them a very important component of the economy. Without the SMEs, the economy will bleed millions of jobs, adversely affecting the economy. This is the reasoning behind the drive by President Obama to give this sector newly acquired impetus and promote it to create more jobs for Americans and grow the economy. The target of the National Export Initiative (NEI) is to boost the export capacity of the SMEs in the U.S. by supporting them; the administration reasons that this will result in the creation
Outsourcing gives the outside company the mandate to carry out the production of a product, for example, but the mother company owns the brand. Therefore, after production, the products are taken back to the mother company for packaging and branding before they hit the markets. The company, therefore, ensures quality products are produced, and it can concentrate on the value addition, packaging, and marketing of the products to ensure it captures the imagination of the potential customer base and, therefore, gets a good market share (Masato, 126).
Outsourcing also allows risk sharing between the client and the outsourcing company. Outsourcing enables the company to shift some responsibility to the outsourced vendor. The contract agreement between the client and the vendor means that they both have some level of responsibility. The sharing of responsibility comes in handy in cases where there are mishaps, or accidents, the damages are shared between the vendor and the clients. This gives the client the confidence to seek outsourcing partners to work with without fears.
The recruitment costs and operational costs as well are significantly reduced. Outsourcing avoids the need to hire staff in-house; hence the recruitment and operational costs are pushed to the vendor and the company does not incur these costs. This is one of the main
The ensuing economic conditions might not enable them to utilize these opportunities. As a result, the immigrants often take the jobs that are available and are comfortable with the pay that is offered. They are, therefore, willing to work for a wage that is lower than those workers that were born in the United States who will demand better wages for their services. Immigration, therefore, has the effect of lowering wages in the country. The presence of cheap labor is helpful to businesses in the country. This is especially so for the small and medium-sized enterprises, most of which are at startups and, therefore, would not be willing to spend large sums of money in acquiring labor services. The SMEs can, therefore, hire enough labor they need and increase their output at favorable costs. The output of the country increases with immigration. Hiring of immigrants also gives the businesses a new perspective of different cultures. It enables the companies to study their culture and language, and this would help in case of when the company expands to these areas for new markets. These immigrant employees would be pivotal in such efforts (Giovanni,