Outsourcing is the transfer of
control of a process or product to a supplier. Companies may outsource
for the financial gains they receive. Outsourcing may help companies avoid of
burdensome regulations, high taxes, high energy costs, and unreasonable costs
that may be associated with defined benefits in labor union contracts and taxes
for government mandated benefits.
Some may
argue that outsourcing is harming the American economy because it reduces the
employment opportunity. People who lose their jobs due to outsourcing must find
new jobs. People who are laid off may find new jobs that they may not be as
qualified for as their old jobs. The loss of worker income negatively impacts
the economy, since these unemployed workers cannot buy goods and services .Businesses
outsourcing jobs do not need to maintain facilities in the United States so they
are not taxed. The government is unable to profit off the services it supplies.
Because large companies are able to outsource, they can reduce the prices of their
products, which harms the small companies who cannot outsource. However, the
insourced jobs make up for some of the outsourced jobs. Companies such as
Toyota, Fiat, Hyundai, Nintendo, Sony, and other overseas companies add jobs. Many
insourced jobs are often higher paying than those outsourced.
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