Sign Up Now
Get instant access to over 1 million+ study documents
OR
Already registered? click here to login
By creating your account, you agree to our terms of service, privacy policy and student honor code.
If there is no control of outsourcing, companies will simply be able to use the cheapest parts and the cheapest labor possible, import goods into the U.S. that were made somewhere else, and not have to worry about quality standards. Governmental regulations exist to protect consumers when it comes to issues such as quality, and the best way to protect consumers with those kinds of regulations is to ensure that companies do not use inferior parts or sell inferior goods that could potentially be dangerous. These goods could be made in the United States, but they are most often created in India and China. That is why the government is targeting outsourcing, and specifically targeting the outsourcing of products to those particular countries. Too much governmental regulation is intrusive to the American people and bad for business, but there must be enough regulation to ensure that the people are being protected from harm.
It is not feasible - and not even possible - to control all of the outsourcing of IT and business jobs...
In a free market economy, such as the one enjoyed by the United States, companies have the opportunity to do what they please because they are allowed to operate by making their own decisions (Barrera, 2004). However, there are licensing requirements and other regulations that have to be met, because the government sees the need to control (to a limited extent) the quality and activities of a business in order to protect the people. Lobbyists who are interested in controlling or eliminating outsourcing to countries such as India and China see the need for stronger governmental control due to the increasing number of inferior products that appear to be coming into the United States from those two particular countries.
References
Barrera, A. 2004. Fair exchange: who benefits from outsourcing? The Christian Century.
Pagach, D. 2004. Outsourcing at your own risk: before outsourcing any process of function, it's essential to assess the risks enterprise-wide. Strategic Finance.
"Dell recently established customer and technical support centers in India, China, Morocco, Panama, and Slovakia and has set up design centers in Taiwan and China. Furthermore, it not only has manufacturing facilities in Texas and Tennessee, but also in Brazil, Ireland, Malaysia, and China" (Pruitt, 2012). Eeven though Dell has come under fire along with other companies by critics who say that offshoring is robbing U.S. citizens of jobs, the
0 as well as 2.0, is the loss of managerial control over the performed operations. Managers find it more difficult to control virtual teams than the employees that work in the direct sub-hierarchy. In order to regain some of the lost control, managers could delegate internal workers to the vendor and charge them with the supervision of the foreign team. However, this solution increases the costs, as the delegated managers
Outsourcing and Global Sourcing According to Entrepreneur.com, the term "outsourcing" refers to "the practice of having certain job functions done outside a company instead of having an in-house department or employee handle them," (2011). While in the past, these job functions have been limited to menial or highly technical tasks, the consensus among outsourcing researchers is that commercial corporations are beginning to outsource large portions of corporate functions, which in turn
185). Components for these products may be manufactured and put together in branches in various countries throughout the world. Thailand, Malaysia, Singapore, and Hong Kong were involved in the earliest types of production sharing, which included assembling electronic components manufactured in other countries. Production sharing, one World Bank study determined, currently contributes to approximately 30% of manufacturers' total global trade. Foreign affiliates' international exports approach over 7% of global
Outsourcing has made great controversy within a number of industries lately. Essentially, outsourcing is "the act of one company contracting with another company to provide services that might otherwise be performed by in-house employees" (Conjecture Corporation, 2012). Yet, this movement is not as easy or pain free as it sounds. Yes, outsourcing can help keep costs down and allow a company to remain globally competitive; however, outsourcing can also cost
International trade has high importance in the economic growth of the country. Even it is not only in benefit of the country's economy but there are number of benefits for the global organization and the overall world's economy as well. Without international trade, it was never possible to reach the success level at which the world is right now. An international trade is the major source of revenue for the country