Outsourcing to China

Now one of China’s most famous archaeological discoveries, the terracotta army was discovered completely on accident in 1974, when farmers were digging deep underground to create a well shaft. The farmers discovered fragments of a terracotta figure, along with bronze weapon pieces and a layer of bricks as they dug, prompting them to contact local authorities to investigate. In just over forty years since then, excavations have uncovered a sprawling model city underneath the earth, spanning miles and containing everything one emperor, Qin Shi Huangdi, required for a paradisiacal afterlife.

Outsourcing is a method used by many corporations in which their products are manufactured in foreign countries often for cheaper labor.This method method of productions has it’s pros and cons.

On March 29, 1974, a couple of workers were digging a water well on the east side of Mount Li outside of the city of Xi’an. The workers uncovered a single terracotta figure and called the government authorities who investigated the matter. Soon, government archeologists were sent to the site. The unearthed great clay army that has baffled modern day craftsmen, intrigued archeologists, and amazed the general public. Before this discovery, no one knew about the First Emperor of China. Forty years later, we know a good deal about his legacy.

Since outsourcing has begun effecting both party lines, Republican and Democrat officials will be interested because members of congress are self-interested. Congressmen who continue to evade the issue and avoid taking a strong stance on this issue will lose votes when it comes to election time and that doesn’t serve in the best interest for any politician. The other big player in this issue is big business. As labor is offered at cheaper rates overseas, it is very tempting for businesses to take advantage of that resource. Saving money is a great way to raise profits and stock values of companies. This brings up the hardest part of this issue. Americans own stock in the big companies that outsource jobs, if the company does well then the stock does well and it helps the investor. The average family makes between 33 to 45 thousand dollars a year. People in this bracket generally rely on their job to provide income and security for their family, not the value of stock. The middle class is taking the biggest hit and has the most to loose from outsourcing. The middle class has traditionally been the backbone of America ever since WWII. It has always been in any candidate’s best interest to appeal to this group of voters.

However, it was apparent to economists that nations with similar resource endowments exchanged similar products with each other. Economists felt that trade explained solely by comparative advantage was an incomplete analysis of international trade. Furthermore, since the classical trade theory was unable to explain intraindustry trade, economists decided to expand on the classical trade theory by creating a new theory of trade (Carbaugh, 2011). The new theory states that economies of scale provide incentive for a country to specialize in a particular product (Carbaugh, 2011). Furthermore, based on economies of scale, nations with similar factor endowments will trade with each other as sometimes it is beneficial (Carbaugh, 2011). Arguments stemming from this new trade theory puts the economic case for free trade in doubt.

It’s definitely the birth of inequality and the reduction in employment is at a high. The economy is growing rapidly, while creating numerous complicated issues. Although, the rich are being wealthier, all the while the poor is at a poverty level. As viewers, we see this is causing a great impact and hardship for people who aren’t in a higher social class. Outsourcing jobs is not a solution, when plenty of jobs is in great demand in the U.S. it just not logical. I am not against another country having employment, but at lease, fix our problem here first. Yes, it is really hard for people to maintain the normal standard of living. But, it makes it even harder when we have insufficient job to keep us employed or even the ability to create new

Outsourcing, or the practice of Corporations expanding their influence, and labor force to foreign countries needs to stop. As it causes the decline of developed nations labor forces, does nothing to fix inequality in underdeveloped nations, has adverse affects on the economies of developed nations, and outsourcing allows corporations to cause extensive harm the the world, and it’s enviornment. If the practice of globalization were ended, it would improve the lives of many people in developed nations, the policies that affect them, and ultimately the world.

China has many inventions like they invented a Lion Dance, and when Lions would reach for lettuce and have it in their mouth they spit it out then there was money. Chinese people also made many bikes so there are more bikes than cars in China. Chinese people also did not like to waste food so they would eat chicken feet, duck tongues, eels, sea slugs, and even jellyfish.

In recent years, China's service outsourcing have been expanding from scratch, and gradually expand the field, scope of business mainly related to Information Technology industry, producing services, as well as cultural and creative industries, the target involving Japan, Korea, Europe, America and India. In Shanghai, Beijing and other cities formed a group of outsourcing industry cluster, with significant economic benefits of international service outsourcing park; local outsourcing companies grew rapidly, and gradually change the pattern of the first to foreign-based.

The main advantage of doing business in China is the fact that China has emerged as one of the world’s strongest economic forces, driven by the shear number of

China’s economical strength comes from its international trades as the economy has grown to a rate of 10.3% in 2010. It has become the world’s largest exporter in the global economy. In the

Example: It takes the U.S. 20 hours to make a tractor, and it takes China 6 hours. It takes the U.S. 5 hours to make a lawn mower, but it takes China 2 hours to make one. In order for the U.S. to make a tractor they would have to give up 4 lawn mowers, while China would only have to give up 3. This shows that China has comparative advantage over the U.S. when it comes to making

Many businesses in United States manufacture their product overseas. This involves manufacturing products outside United States where the labor cost is cheaper. Because of cheap labor, it is often more economical for a U.S. company to manufacture overseas and pay the shipping costs than to manufacture in the United States. For a company, the savings may be substantial. However, there are negative impacts on U.S. employment, as many jobs in the United States are being outsourced and replaced by overseas positions. The manufacturers outsource production projects to save time, money or resources. The manufacturing is outsourced so as to remain competitive and maintain a steady work flow. Without outsourcing, manufacturing costs could escalate to the point at which no product would sell and all employees would have no work. Outsourcing comes

In analyzing the second reason listed for why outsourcing is used; ‘inability to attract the highest caliber of employees to job functions that may be peripheral to the organization’s core discipline’, companies employ a different kind of outsourcing tactic. This reason leads to offshore outsourcing solutions. If a company cannot attract high caliber domestic employees to job functions secondary to their main function then they seek help where labor may be less expensive and more efficient.

On the other hand, the vast majority has no issue purchasing low valued products from Walmart, or eating a food which is to a great extent include prepared food made in distant nations. The fact cannot be neglected that we all need lower costs. In actual fact, we request lower costs. Where do you think those low estimated merchandise originates from? They are all produced in sweatshops where laborers are procuring just dollars a day in unforgiving conditions in respect to developing nations. Acquiring those items does much more harm to the employees, environment and one’s own particular wellbeing than outsourcing labor at the Internet. Hence, it can be stated that the outsourcing transformation is bringing millions, perhaps billions of low wage individuals onto the world platform.