1150 research essay. final draft

1150 research essay. final draft - Writing 1150 The...

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Writing 1150 The Outsourced American The year is 2008. The population of the world is believed to be over 6.6 billion people, with over one-third of these individuals residing in China or India, as compared to 304 million in the United States. With wages in India, China, and other developing countries being dramatically lower than minimum wages in America, it is logical for companies to look for cost-cutting strategies that take advantage of the large labor markets and growing number of educated minds in these growing nations. As Americans see jobs being sent overseas and the rise of China and India in the global economy, the natural question arises whether or not outsourcing is having a positive impact on Americans. From an economic perspective, outsourcing is merely a way to utilize free trade on a global level so various stakeholder groups can realize such benefits as better health care and more stable political relations between nations playing a role in outsourcing. Although outsourcing can have a negative effect on small communities as well as environmental health, firms that choose to act responsibly when outsourcing to foreign nations are likely to have a positive impact on their stakeholders. One way for American stakeholders, or parties affected by an organization’s actions, to realize the benefits of outsourcing is through an increased standard of living. A basic law of economics states that nations should specialize in producing goods that they have a comparative advantage in and trade these goods with other nations. In his book The Wealth of Nations, Adam Smith describes this basic principle of economics as it relates to an individual family as well as nations as a whole in this passage:
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It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy... If a foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have some advantage (485). Although Adam Smith wrote this in 1776, it still applies to the routines of many average Americans. Whether it is dropping laundry off at the dry cleaners or eating lunch, Americans often pay others to perform work they could have done in order to simplify their life or entrust a certain service to a specialist. Firms can see the same benefits as individuals when they utilize
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