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Outsourcing and Its Benefits for US Economy Essay

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.

This Essay on Outsourcing and Its Benefits for US Economy was written and submitted by user Davian Reed to help you with your own studies. You are free to use it for research and reference purposes in order to write your own paper; however, you must cite it accordingly.

Davian Reed studied at Baylor University, USA, with average GPA 3.27 out of 4.0.

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Reed, D. (2020, March 26). Outsourcing and Its Benefits for US Economy [Blog post]. Retrieved from

Work Cited

Reed, Davian. "Outsourcing and Its Benefits for US Economy." IvyPanda, 26 Mar. 2020,

1. Davian Reed. "Outsourcing and Its Benefits for US Economy." IvyPanda (blog), March 26, 2020.


Reed, Davian. "Outsourcing and Its Benefits for US Economy." IvyPanda (blog), March 26, 2020.


Reed, Davian. 2020. "Outsourcing and Its Benefits for US Economy." IvyPanda (blog), March 26, 2020.


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

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