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5.05 H Outsourcing

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Michelle Montoya

on 8 December 2012

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Transcript of 5.05 H Outsourcing

5.05 Honors EconomicsAssignment
By: Michelle Montoya Outsourcing Why are some people against outsourcing? Why do others support it?
Many people are against outsourcing because it takes jobs away from Americans and American families while giving them to people from other countries.

Others support this because they believe that in the long run, it could help American jobs and the economy; as foreign incomes rise, that helps US employees again.
What barriers to trade would prevent an American company outsourcing to one of those countries?
A common barrier to trade is a government subsidy to a particular domestic industry. Subsidies make those goods cheaper to produce than in foreign markets.

This could happen between the US and China if they decide that they can produce the goods cheaper in their own country.

Possibilties of tariffs could also affect companies from properly being able to outsource to a country. Do you think outsourcing would promote or hinder a healthy American economy? Explain.
I believe that outsourcing is good and bad for the economy but that in the long run, it can help the American economy grow and become more stable.

Bad because it does cause hundreds of thousands of people at a time to lose their jobs but at the same time, it allows other countries to raise their pay, which in term, raises our own. What industries or companies may have an interest in outsourcing to your countries of research?
Capgemini, a french IT company has branced out into many countries throughout the years.

Computer Sciences Corporation, started in the US and has branched out to fellow nations around the globe.

Sodexo, a global food service company, is also on the outsourcing list. Starting in France and proceeding to the US and other countries.
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