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Global Outsourcing And The World Trade Organization

2000 words - 8 pages

Global outsourcing occurs when a company reconstructs its business and creates or moves certain departments overseas, out of the U.S. It's such an easy concept to understand but has created much controversy. Because of the elections, politicians have exploited the effects that global outsourcing has on our economy. Unfortunately, most people myself included, have supported an opinion without reviewing the facts. My feelings toward outsourcing are more concerned with the country that is having its workers exploited by large American companies. Rather than focus on improving a country and its people these companies are focused on getting all the cheap labor they can until they find a cheaper ...view middle of the document...

)The economy has several factors affecting it. One of the main factors is the unemployment rate. Unemployment is the major fear from U.S. citizens concerning global outsourcing and a large percentage of the information is based on the loss of jobs. The big cry from those opposed to outsourcing is that hundreds of thousands of men and women will be out of work, however while researching I found that this practice of outsourcing is a common practice in the U.S. industries.Almost two decades ago auto and textile manufactures began to move their factories to low wage countries without strict laws governing employee rights. The wages were dramatically lower allowing companies to invest in more cost effective production and lower prices for consumers. But, this took thousands of jobs away from U.S. factory workers. There was little said of this outsourcing because those who were affected were blue collar workers, the lower middle class who didn't have a voice loud enough to rattle politicians. Those workers were told to retrain and they would find better jobs. The government told them that global outsourcing would help our economy. Some did retrain and many found other jobs and as the government predicted, outsourcing had a positive effect on our economy. The outsourcing that occurred back then helped to lower manufacturing costs in turn lowering prices, making products cheaper to U.S. consumers.Recently off-shoring has affected the white collar worker, mainly in the information technology sector of U.S. jobs. It has rearranged many IT jobs and left some unemployed. The jobs being outsourced are predicted to be about 220,000 annually for the next 15 years. When compared to the new jobs that are predicted to be created in the U.S. by 2010, 22 million, outsourcing will potentially only affect .2 percent of the U.S. work force.One reason for the surge in IT outsourcing (mainly to India) is due to the rise in Indians getting college degrees in the related fields and the lower wages paid in that country. Many large companies, who are outsourcing, also blame their decisions on the companies ahead of them. These companies say they must outsource to keep up with their competition.When the statistics concerning outsourcing are discussed their numbers include other factors such as technology advances and the slouching economy. Most people tend not to include those factors; they only focus on the numbers, and give one reason for the higher unemployment percentages...off-shoring. This exaggeration causes these higher paid IT workers to get nervous and have made it into a political issue. Some companies haven't even began to lay off workers, hey are only moving jobs from those baby boomers that are retiring or just creating new jobs in other countries, mainly India. While outsourcing has contributed to a small loss of jobs, a major problem that many overlook is the lack of new jobs being created. Outsourcing has in the past helped to created new jobs, perhaps it...

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