Question

Why are some people against outsourcing? Why do others support it? Choose a developing nation and a developed nation. What industries or companies may have an interest in outsourcing to these nations? What barriers to trade would prevent an American company outsourcing to one of those countries? Do you think outsourcing would promote or hinder a healthy American economy? Explain.

Answer 1

Answer:

People is against outsourcing because they think this business tactic is based on the idea of avoiding the employer's responsibilities. On the other hand, others believe it is a practice that allows companies to focus resources on the core activities delegating not critical functions to others with higher expertise or efficient execution levels.

Explanation:

Take as an example China and the USA. Technology companies as Apple have interest in outsourcing manufacture functions to these countries because labor cost is cheaper (labor arbitrage). By outsourcing the manufacture functions, Apple has to import to the USA the parts, and a rise in trade barriers that could increase the tariff of Chinese manufacture products could hinder this practice. If we think a world where labor rights are respected everywhere, I think outsourcing could be a good business practice because allow companies to optimize the use of resources, promoting specialization and higher levels of efficiency, increasing the production of goods and therefore, the economic well-being of the population. In that sense, I think outsourcing could promote a healthy American economy