These companies can now afford to introduce many types of hairdryers because they are manufactured in Asian regions, and their production costs have reduced, allowing them to expand their product range and to promote smaller prices that are attractive to customers.

Although these companies produce numerous types of hairdryers, the products of different companies are almost identical. There is little product differentiation. The quality of the products is similar, they provide similar benefits, they almost have the same price, the technology they use is similar, even their shape is similar. They mainly differ in color, and name.

Given the circumstances it does not matter much what brand the customer chooses to purchase. The customer makes his choice in accordance with brand loyalty or with some sort of affiliation with certain companies.

As mentioned above, the quality of these products is not a high one. This means that these products break easily and they must be replaced with others, maybe sooner than the customers expect. As a consequence, consumers will pay more for these products on medium term and on long-term.

The problem in this situation relies on the fact that consumers do not have a choice in this case. This is because there are no such products manufactured in other countries, of higher quality, even if the price would be higher.

But there are certain categories of products where high quality is not a necessity. For example, clothing items manufactured in Asian regions are not of the best quality. But people accept them because they are cheaper.

Another category that draws some benefits from outsourcing is represented by companies. As mentioned above, some of them are able to significantly reduce their production costs. This is mainly applicable to large corporations that have the financial power to sustain such an outsourcing process.

As mentioned above, outsourcing has a direct impact on the jobs in the local market. Unemployment has significantly increased in accordance with the development of the outsourcing phenomenon.

However, there are specialists in the field that argue that through outsourcing lower level jobs will be outsourced, while the local market will develop new, interesting jobs for the local workforce...

This will push smaller companies to do the same, in order to maintain their competitiveness on the market. It is expected that the negative effects that this situation will have on the U.S. worker will grow in importance.
Therefore, it is recommended that the government develops and implements a series of strategies that are designed to protect these workers, the companies, and the financial system. In other words, control in this area must be improved in order to prevent the expansion of the problems caused by outsourcing.

Reference list:

1. Shivapriya, N. (2009). India Remains World's Top Outsourcing Destination. Bloomberg Businessweek. Retrieved April 27, 2010 from http://www.businessweek.com/globalbiz/content/jul2009/gb20090710_974200.htm.

2. Evaluating outsourcing destinations (2009). BioSpectrum Resource Guide. Retrieved April 27, 2010 from http://resourceguide.biospectrumasia.com/asialssrg/article_pdf/evaluatingoutsourcingdestination.pdf.

3. Negative effects of outsourcing (2008). Retrieved April 28, 2010 from http://www.bizbrim.com/outsourcing/negative-effects.htm.

4. Bryant, B. (2004). Offshore outsourcing affects American workers. WTN News. Retrieved April 28, 2010 from http://wistechnology.com/articles/603/.

5. Baumann, H.D. (2005). Outsourcing -- Good or Evil? Mechanical Engineering Magazine. Retrieved April 28, 2010 from http://www.memagazine.org/contents/current/webonly/wex30905.html.

6. Raynor, W. (2003). Outsourcing Jobs Off-shore: Short-Term and Long-Term Consequences. The State University of New York. Retrieved April 28, 2010 from http://www.newwork.com/Pages/Opinion/Raynor/Outsourcing%20Consequences.html.

Negative effects of outsourcing (2008). Retrieved April 28, 2010 from http://www.bizbrim.com/outsourcing/negative-effects.htm.

Bryant, B. (2004). Offshore outsourcing affects American workers. WTN News. Retrieved April 28, 2010 from http://wistechnology.com/articles/603/.

Baumann, H.D. (2005). Outsourcing -- Good or Evil? Mechanical Engineering Magazine. Retrieved April 28, 2010 from http://www.memagazine.org/contents/current/webonly/wex30905.html.