The Effect of Outsourcing on the U.S. Economy: Are China and India Threats or Opportunities Essay Example
The Effect of Outsourcing on the U.S. Economy: Are China and India Threats or Opportunities
The U.S. economy has been negatively affected by Globalization and Outsourcing. The more U.S. based companies continue to outsource jobs, the more risk America takes in allowing other countries to pose a threat to our economy as a whole. Could other countries such as China or India be a threat to the U.S. Economy? With the overwhelming increase of outsourcing jobs, this question has become a valid concern. There are many reasons American companies use to justify outsourcing jobs to other countries instead of keeping them here in America, but the question remains In the long run, will outsourcing cause the U.S. to lose it place as an economic superpower?
Globalization and Continued Outsourcing
The literal definition of globalization is “growth to a global or worldwide scale.” (wordnet.princeton.edu 2006). Often used as a term associated with the economy, Globalization refers to the integration of national economies into international economies through trade, foreign direct investment, capital, migration and the spread of technology. Globalization which was expected to benefit the U.S. economy is now posing a threat. Such issues as the increase of the trade deficit as well as the increase of job losses have affected the U.S. economy as a whole. U.S. companies such as IBM, Ford Motor, GE Capital, Gateway and United Airlines have sent jobs overseas and have chosen to employ cheap labor instead of keeping the jobs in America for American workers. What are the opportunities and threats that are of relative importance to the U.S. economy? According to Tokic (2005), an opportunity is defined as an intermediate to long-term development or trend that potentially increases corporate profitability, and consequently boosts the stock market. When we think about where the growth opportunities present themselves, two countries come to mind; China and India.
The U.S. economy has been negatively affected by Globalization and Outsourcing. The more U.S. based companies continue to outsource jobs, the more risk America takes in allowing other countries to pose a threat to our economy as a whole. Could other countries such as China or India be a threat to the U.S. Economy? With the overwhelming increase of outsourcing jobs, this question has become a valid concern. There are many reasons American companies use to justify outsourcing jobs to other countries instead of keeping them here in America, but the question remains In the long run, will outsourcing cause the U.S. to lose it place as an economic superpower?
Globalization and Continued Outsourcing
The literal definition of globalization is “growth to a global or worldwide scale.” (wordnet.princeton.edu 2006). Often used as a term associated with the economy, Globalization refers to the integration of national economies into international economies through trade, foreign direct investment, capital, migration and the spread of technology. Globalization which was expected to benefit the U.S. economy is now posing a threat. Such issues as the increase of the trade deficit as well as the increase of job losses have affected the U.S. economy as a whole. U.S. companies such as IBM, Ford Motor, GE Capital, Gateway and United Airlines have sent jobs overseas and have chosen to employ cheap labor instead of keeping the jobs in America for American workers. What are the opportunities and threats that are of relative importance to the U.S. economy? According to Tokic (2005), an opportunity is defined as an intermediate to long-term development or trend that potentially increases corporate profitability, and consequently boosts the stock market. When we think about where the growth opportunities present themselves, two countries come to mind; China and India.