BUS155 week 6 hw - 1 . Question: How did U.S. manufacturers...

Info iconThis preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
1 . Question: How did U.S. manufacturers become vulnerable to offshore outsourcing? Give examples to support your answers. Your Answer: Shifting jobs to lower-wage countries is a form of what is known as offshore outsourcing it is an increasingly popular practice among U.S. businesses seeking to cut operating costs. Outsourcing has also become political shorthand for presidential candidates to describe what is perceived as unfair international trade and its costs for U.S. workers. The issue has become highly emotional because of outsourcing's two dramatically different effects: it leads to layoffs and dislocations for thousands of U.S. workers, even as most economists say it will ultimately strengthen the U.S. economy. Many economists argue that outsourcing is just another form of free trade, which increases wealth in the economy. They say that employing workers at lower cost allows U.S. companies to be more efficient and productive, permitting them to create the same amount of goods with fewer resources. In turn, this lowers the price of the goods in the United States, strengthening U.S. companies and freeing workers for other tasks. Staying competitive may call for outsourcing. Outsourcing means contracting with other companies to do some or all the functions of a firm, like it's production or accounting task. Business leadears must make outsourcing decisions based on all factors.
Background image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full DocumentRight Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 05/23/2010 for the course BUSN BUSN115 taught by Professor Goldwasser during the Spring '10 term at DeVry Chicago O'Hare.

Page1 / 3

BUS155 week 6 hw - 1 . Question: How did U.S. manufacturers...

This preview shows document pages 1 - 2. Sign up to view the full document.

View Full Document Right Arrow Icon
Ask a homework question - tutors are online