Outsourcing and Its Benefits for US Economy Essay

Exclusively available on Available only on IvyPanda® Made by Human No AI

Outsourcing in the United States has generated both negative and positive feedbacks. However, scholars and non-scholars talk about subcontracting jobs as causing loss of jobs for the Americans without looking at how it benefits the U.S. economy. In fact, literature shows that outsourcing benefits both the U.S. and foreign economies that are involved in the process.

The benefits are not just through boosting the U.S economy, but also foreign countries’ economies (Coontz 1). Thus, given the benefits of outsourcing, any country should embrace the activity as it generates positive effects to societal entrepreneurs.

Outsourcing can be defined as the arrangement made by a company, which seeks the assistance of another company that has the necessary skills it lacks to provide services it requires. The trend is becoming common especially in the manufacturing industry.

Companies often use outsourcing to reduce costs via transferring some of the workloads to the outside suppliers. In most cases, outsourcing is a very cost-effective initiative if it is used correctly (Bartlett 1). Thus, outsourcing is always a way of reducing the operational costs or redesigning a company to maximize on the profits.

Most savings that occur through overseas states are enhanced by the United States’ economies that subcontract jobs to these alien corporations. Having companies in other countries create trust among the investors. In fact, perceptive investors can see their money put to work and ensure that countries maintain peace for the investments to thrive.

These reserves aid in the development of the nations’ markets via offering employments for the jobless thus raising the lifetime standards. Therefore, subcontracting jobs allows the state to purchase more exports from the U.S. hence increasing the U.S. revenues (Coontz 2).

The economies of different countries have been built based on outsourcing. A case illustration is Singapore that takes part in subcontracting its services to overseas states. In fact, the current economy depends on global marketing in all parts of the world.

The United States greatly depends on the importations and subcontracting of jobs to other states implying that it is included in the international marketplace. The U.S cannot rely on sales from the U.S only. Thus, to be on the competitive edge with other countries, it has to be a part of the global market through outsourcing (Correnti 3).

The United States can obtain merchandises from the overseas nations inexpensively due to subcontracting since such commodities do not necessarily have to be imported. Since foreign labor is often less costly, there will be an increase in the company’s profits making the goods cheaper for the U.S consumers who buy the commodities for personal use. As a result, subcontracting jobs benefit most producers from the U.S that produce exports given that their products have ready markets (Bartlett 1).

The United States currency is utilized as a global exchange denomination in almost half of the world. The U.S being a large country makes its dollar or currency largely acceptable. In turn, this gives the country’s banks an advantage when it comes to investing. For instance, the U.S banks can help the foreign countries’ investors with financial aid making the United States the financial superpower and a well-respected country (Correnti 5).

Outsourcing provides the best talent for the job required. The situation creates a competitive advantage for the company outsourcing since it encourages innovations and development of great ideas. The company only outsources work to countries where the necessary skills required are found thus benefiting the society (Coontz 1).

In conclusion, nations often profit from unrestricted commerce whether it involves services or properties. Subcontracting concerns the exchange of services athwart global boundaries. If a country is good at one skill compared to the other state, then they are allowed to trade their services.

For a country to develop economically, it should be able to outsource services otherwise it will be excluded from the global market and lose its market share (Correnti 4). Therefore, given that outsourcing has varied benefits, it should be accepted in any country with little government involvement and adjustments to the policies at hand.

Works Cited

Bartlett, Bruce 2004, “How Outsourcing Creates Jobs for Americans.” The National Center for Policy Analysis Journal. Web.

Coontz, George. “Opinion: The Benefits and Costs of Outsourcing Jobs.” The Place Park Place Economist, 12.1(2004): 1-3. Print.

Correnti, Madison 2014, Outsourcing Overseas and its Effects on the U.S Economy. Web.

More related papers Related Essay Examples
Cite This paper
You're welcome to use this sample in your assignment. Be sure to cite it correctly

Reference

IvyPanda. (2020, March 26). Outsourcing and Its Benefits for US Economy. https://ivypanda.com/essays/outsourcing-and-its-benefits-for-us-economy/

Work Cited

"Outsourcing and Its Benefits for US Economy." IvyPanda, 26 Mar. 2020, ivypanda.com/essays/outsourcing-and-its-benefits-for-us-economy/.

References

IvyPanda. (2020) 'Outsourcing and Its Benefits for US Economy'. 26 March.

References

IvyPanda. 2020. "Outsourcing and Its Benefits for US Economy." March 26, 2020. https://ivypanda.com/essays/outsourcing-and-its-benefits-for-us-economy/.

1. IvyPanda. "Outsourcing and Its Benefits for US Economy." March 26, 2020. https://ivypanda.com/essays/outsourcing-and-its-benefits-for-us-economy/.


Bibliography


IvyPanda. "Outsourcing and Its Benefits for US Economy." March 26, 2020. https://ivypanda.com/essays/outsourcing-and-its-benefits-for-us-economy/.

If, for any reason, you believe that this content should not be published on our website, please request its removal.
Updated:
This academic paper example has been carefully picked, checked and refined by our editorial team.
No AI was involved: only quilified experts contributed.
You are free to use it for the following purposes:
  • To find inspiration for your paper and overcome writer’s block
  • As a source of information (ensure proper referencing)
  • As a template for you assignment
Privacy Settings

IvyPanda uses cookies and similar technologies to enhance your experience, enabling functionalities such as:

  • Basic site functions
  • Ensuring secure, safe transactions
  • Secure account login
  • Remembering account, browser, and regional preferences
  • Remembering privacy and security settings
  • Analyzing site traffic and usage
  • Personalized search, content, and recommendations
  • Displaying relevant, targeted ads on and off IvyPanda

Please refer to IvyPanda's Cookies Policy and Privacy Policy for detailed information.

Required Cookies & Technologies
Always active

Certain technologies we use are essential for critical functions such as security and site integrity, account authentication, security and privacy preferences, internal site usage and maintenance data, and ensuring the site operates correctly for browsing and transactions.

Site Customization

Cookies and similar technologies are used to enhance your experience by:

  • Remembering general and regional preferences
  • Personalizing content, search, recommendations, and offers

Some functions, such as personalized recommendations, account preferences, or localization, may not work correctly without these technologies. For more details, please refer to IvyPanda's Cookies Policy.

Personalized Advertising

To enable personalized advertising (such as interest-based ads), we may share your data with our marketing and advertising partners using cookies and other technologies. These partners may have their own information collected about you. Turning off the personalized advertising setting won't stop you from seeing IvyPanda ads, but it may make the ads you see less relevant or more repetitive.

Personalized advertising may be considered a "sale" or "sharing" of the information under California and other state privacy laws, and you may have the right to opt out. Turning off personalized advertising allows you to exercise your right to opt out. Learn more in IvyPanda's Cookies Policy and Privacy Policy.

1 / 1