knowledge is power
Manufacturing Industry Moving Abroad
Abstract
The problem of manufacturers relocating to different areas of the world to produce goods is a problem that has been around for decades. The appeal for manufacturers to move overseas is clearly seen. According to Sen. Carl Levin, “Cheap labor, no safety standards and no environmental standards” (2) are prime reasons why many jobs are being moved overseas. According to the Labor Research Association, “The new attention in the media to the export of jobs did not develop until white-collar jobs began to evaporate along with manufacturing jobs and no replacement jobs appeared. The export of jobs is no longer just a question of factory jobs. Forrester Research reports that 3.5 million U.S. white-collar jobs will move offshore by 2015-about 200,000 jobs a year- to low-wage counties such as India, China and Mexico” (Exporting the Blame 1) Wages in these counties compared to that of the United States are a clear indication of why manufacturers are so eager to try out the overseas markets. According to the Labor Research Association, A U.S. Company can hire a software developer in the U.S. for $60 an hour or one in India for $6 an hour. So what’s to be done to combat the desire of companies to move to other countries? Therefore, in this paper, I am going to explain the reason in depth why manufacturing companies especially in the industrialized countries move abroad, the merit and demerit.
INTRODUCTION The last few years have seen a remarkable number of companies in industrialized nations such as America moving overseas, resulting in the loss of many jobs in the US economy. While manufacturing companies have taken their operations overseas for decades, the trend is now also happening in the service industry, and the pain of the bite is too much to ignore. Though from my research, there are a lot of reasons for such decisions by these companies, but things are always works in two opposite directions, in other words, this
Abstract
The problem of manufacturers relocating to different areas of the world to produce goods is a problem that has been around for decades. The appeal for manufacturers to move overseas is clearly seen. According to Sen. Carl Levin, “Cheap labor, no safety standards and no environmental standards” (2) are prime reasons why many jobs are being moved overseas. According to the Labor Research Association, “The new attention in the media to the export of jobs did not develop until white-collar jobs began to evaporate along with manufacturing jobs and no replacement jobs appeared. The export of jobs is no longer just a question of factory jobs. Forrester Research reports that 3.5 million U.S. white-collar jobs will move offshore by 2015-about 200,000 jobs a year- to low-wage counties such as India, China and Mexico” (Exporting the Blame 1) Wages in these counties compared to that of the United States are a clear indication of why manufacturers are so eager to try out the overseas markets. According to the Labor Research Association, A U.S. Company can hire a software developer in the U.S. for $60 an hour or one in India for $6 an hour. So what’s to be done to combat the desire of companies to move to other countries? Therefore, in this paper, I am going to explain the reason in depth why manufacturing companies especially in the industrialized countries move abroad, the merit and demerit.
INTRODUCTION The last few years have seen a remarkable number of companies in industrialized nations such as America moving overseas, resulting in the loss of many jobs in the US economy. While manufacturing companies have taken their operations overseas for decades, the trend is now also happening in the service industry, and the pain of the bite is too much to ignore. Though from my research, there are a lot of reasons for such decisions by these companies, but things are always works in two opposite directions, in other words, this