Pros And Cons Of Outsourcing Jobs To Foreign Countries?
Posted by China Sourcing CommentatorNov 9
I am in the brainstorming portion of writing a persuasive essay on outsourcing jobs to foreign countries. Could you give me somewhere to start? Pros and cons would be great thanks!
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Food for thought— Our government is spending an enormous amount of money attempting to stop Mexicans from entering our country. They are failing. Why do they want to come here? There is no work and little adequate health care in Mexico. Would it be more economically feasible for the American taxpayer if the government were to give tax breaks to corporations that built facilities in Mexico which incorporated health care to out source jobs? Would it slow the flood of Mexicans fleeing poverty by coming here? I thought it might be a topic worth writing about.
As a small business owner, I have to pay my employees fair market wages. If they are unionized, I am forced to not only pay them union wages, but also make available various benefits packages. These inturn, drive up the cost of my products and services.
If I can outsource and send the raw materials overseas to be assmbled by laborers at a fraction of the cost and still pay the cost of shipping, handling and whatever import/export tax or tariff and still manage to keep the cost of my products and services down ten the likelihood of profit is greatly increased.
Remember, I’m in the business of making money and I can’t stay in business if I’m paying it all out to those who do very little work at a lower quality and still demand greater pay and benefits packages.
The downside is, by not employing here, prospective customers may have no money to purchase whatever it is I’m selling. No job, no money. No money, no disposable income. Low daily sales, no profit. No profit, I have to let someone go or close shop.
Other longer terms pros are that these foreign countries would move to a higher standard of living once they have been exposed to more work from other countries. It may create a larger pool of potential consumers for products in the future. However, in turn this would mean there is another place to go to for low cost labor.
The obvious cons have been mentioned.