omalleybusinessresearchpaper - The garment industry in New...

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The garment industry in New York City is the world’s largest of its kind, and at one time was one of the strongest industries in the city, employing 10% of the populations and a third of the manufacturing workers (Lower). Today the garment industry contributes 8% of manufacturing business and employs 2% of the city (Lower). Why has the industry dwindled so- we all still need clothing- so what is the reason for this decay? The answer is as complex as the question, but the main factor destroying the once flourishing fashion industry of Manhattan is the same factor destroying small businesses and improving the economies and lives of people overseas. Outsourcing to American workers means a loss of employment, to American CEOs it speaks of higher profits and often times more efficient production. To the people in the countries the employment is being outsourced to, it can mean both opportunity and woe- factory conditions and wages are more often than not deplorable. Outsourcing is not a clear-cut issue, depending on your perspective the benefits and negatives may change entirely. What is certain is that outsourcing has played a major role in the fall of the garment industry in New York City. From a strictly economic perspective, not considering the people in the industry, outsourcing is not a negative for the American economy. According to research by the Milken Institute, We looked into what happens to a dollar of U.S. corporate spending when a company moves a service job to India. We found that, far from being a zero-sum game, offshoring is a story of mutual gain, benefiting both countries. The receiving economy (India) captures 33 cents, in the form of wages paid to local workers,
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This note was uploaded on 04/07/2008 for the course BUS 1000H taught by Professor Omalley during the Fall '08 term at CUNY Baruch.

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omalleybusinessresearchpaper - The garment industry in New...

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