When it comes to outsourcing the main reason people support it is because it cost less to make and or produce and item in another place and ship it than it does to make them in a local area

When it comes to outsourcing the main reason people support it is because it cost less to make and or produce and item in another place and ship it than it does to make them in a local area. In one of the short stories on outsourcing it states “For large corporations looking to grow their industry and sell goods cheaper and faster, outsourced labor is the answer. Labor overseas can be anywhere from five to 20 percent of what it costs in the States—which is a huge cost savings.” On the other hand outsourcing increases unemployment locally. Because of big corporations they have a big effect on why local stores get shut down. As stated in one of the short stories given to me in this lesson it states “Slowly but surely, many factories around the U.S. have, and will continue to close due to outsourcing. One instance includes Whirlpool, who shut down its Evansville, Indiana factory in 2010, after 54 years, to move its refrigerator assembly operation to Mexico. This resulted in the loss of 1,200 local jobs.” Even though outsourcing may have some great beneifts no doubt, and is , cost-effective option for corporations it does impact those Americans whose jobs were cut as a result.
There are many places around the glob that are big industries that look at outsourcing. Some of these different places for example are Mexico, China, United States, Zimbabwe, and India. For example a developing nation Zimbabwe they have a great amount of gold and because of that watch companies or jewelry companies might want to outscore there and because of a lot of gold this means that the labor cost would be low. Many stores or companies use outsourcing like Walmart and Microsoft. Companies outsource to save money like Walmart as we can all tell. The use there famous phrase “everyday low prices” meaning they pay less for all the prodcuts to be made and for that they charge less to sell them to costumers.
The problem with Zimbabwe is that you need and license. This would stop American stores and companies from outsourcing because they would need an license to have access to get gold, and to even sale and trade. So the barriers of trade that would prevent would be a Licenses and Tariff. In the lesson provided for this module it states that a tariff is “a tax on imported goods. It is added onto the selling price when it enters the country and increases the price of import goods, thus decreasing the quantity demanded” another way to put it would be that tariffs have the effect other countries to tax imports and exports to and from the outsourcing country. The other one I listed was licenses and this is official permission to trade in a country. A country may grant a license to a specific foreign company to import a certain good” and without this can effect on limiting supply and access to certain imported goods.
In my prefrance I think that ouscourcing would hinder Americas economy. It help its economy grow and become more stable yes. But there are parts where outsourcing will hinder the economy because it causes the effect of lack of jobs for American individulas. This will than causes family and individulas to end up being poor and not afford many things and or pay their bills. If familes start to go in debt as well in the long run the government will than have to pay for the bills. I honesty think we should create more jobs if possible and stop trying to mess with unemployment rate before we start to think about offering jobs to other countires.