Overseas Outsourcing , Market forces
Market forces are the main determinant of outsourcing. For example, there is an increase in the need to lower the costs of production in order to produce similar changes in the costs of products. Companies are forced to move to overseas countries by market forces because they need to remain competitive in the market. Failure to seek cheap labor is potentially dangerous because a company may be pushed out of the market by cheaper products produced outside the country (Virgin Par 12). Therefore, the main reason for outsourcing labor is the increasing costs of labor within the US.
Outsourcing provides companies with an advantage over their competition or enables them to keep up or at least compete with the leading brands. The effects of brand presence in that smaller companies often need to lower their costs to compete(Virgin Par 15). For example, reducing the production costs is an effective way of reducing the costs of products and therefore competing in a market dominated by established brands. Therefore, the presence of cheap labor is a function of economic competition between companies.
[...] The result is that the local population can use the infrastructure for other transportation purposes. This leads to economic development of other sectors of the local economy. In additional, the wages derived from working for the outsourced organizations provides a means of survival for the local populations. In recent years, a combination of increasing population and effects of climate change have reduced productivity of food in developing nations(Nikbakht 53). Therefore, the people there need a regular source of income for survival. [...]
[...] On the other hand, the lower classes of the American society are denied employment by outsourcing. Therefore, a lot of negativity outcomes from cheap labor. However, this is just the way capitalism works. Factories have to reduce their costs of production to increase profits. Work cited Katzner Rutledge, Donald W. Culture and monetary Explanation: money matters in the US . New York city: Rutledge Print. Lach, Alex. Facts About Overseas Outsourcing." Name July 2012. [...]
[...] Therefore, locals are forced to work in these factories in addition, the increase in population in the developing countries and the reduced levels of agricultural production make the local people susceptible(Katzner 87). Ethical issues in use of cheap labor As shown earlier, local people are exposed to hazards because they are ignorant and the local governments have not developed the necessary means to protect them. In many cases, the safety measures are often ignored or insufficient to cover the working population. Therefore, there is an increase in prevalence of related diseases such as pulmonary infections. To make matters worse, these people are not covered by insurance (Lach Par 4). [...]
[...] Though the provision of a means for survival is positive, child labor denies children of the opportunity to go to school and therefore makes them reliant on cheap labor for the rest of their lives (Lach Par 7). Once the finished products are manufactured, they are often exported and sold for high prices. The remaining g products are often too expensive for the local population and are consumed by the higher social classes. Therefore, though market forces drive the search for cheap labor, there is an element of exploitation because the wages do not correspond to the work output (Pearlstein par 6). In conclusion, cheap labor exploits the laborers and their national resources with inadequate compensation. [...]
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