Dealing with Outsourcing to Foreign Nations in American Companies

American trade is what makes us strive as a nation. The United States wouldn't function well without trading to other nations. Our relations with foreign nations is definitely a very important aspect to our economy. In fact, more and more American businesses are actually hiring employees over seas. These employees are cheaper, and most Americans believe that since these people are getting jobs, Americans are potentially losing jobs. This is true, theoretically, but in all actuality, we can all gain from such ways of employment. If employment is cheaper, products are cheaper, and more money is gained domestically. Outsourcing should remain legal and allowed in the United States because it provides our consumers with cheaper prices as well as lower prices for the producers.

Most of the largest companies in the United States outsource for employees in different nations. These employees will in turn work for cheaper labor, because they're more likely to live in poverty and will work for extremely low wages, less than a fraction of the minimum wage requirement in the United States. This may be unethical, but the United States is benefiting in some aspects, and the other nations are benefiting in some aspects as well (Bahl).

In the United States, since the labor was cheaper and therefore the products cost less to produce, the consumers will pay much less for the product. This is turn saves us much more money, and causes us to buy more products in the long run (Bahl).

In the foreign nations, which are outsourced to, pretty much everyone benefits (Hartmann). American money is worth more, even with these rates dropping, the money paid to these employees is either average for their area or possibly even higher. If people work for these wages, they really can't complain because they're working based on their own free will. These people will in turn bring more money into their own economy. Both sides of the fence are benefiting from outsourcing.

Of course there are definitely some imminent fears of outsourcing. Americans believed that the outsourcing is causing a loss of jobs. Not necessarily. Employers are still going to hire American workers, because we prove to be much more product and work efficient than employees over seas. American workers are always going to be needed in America, regardless of how easy it is to outsource. American workers are also more likely to get paid more with outsourcing, because the employers can afford the extra money, which was derived from paying people over seas smaller wages.

Some people may also believe that paying people over seas in "sweat shops" and other horrible names for their working conditions is inhumane and unethical. Of course these working conditions are horrible in comparison to the United States, but the people in these foreign nations are going to work under horrible conditions regardless of the outsourcing. The main point is that the people in these American factories are willingly working, and are paid what they want for the work they do, otherwise they wouldn't even bother working (Mitchell).

Outsourcing affects us all, most of us positively (Mitchell). When you buy a cheap or off brand product, remember that it's cheap because of outsourcing, not because Americans were paid extremely high wages. People over seas are benefiting, not losing because they're held under typical working conditions for their areas. Outsourcing is a positive thing for American businesses and consumers. . Outsourcing should remain legal and allowed in the United States because it provides our consumers with cheaper prices as well as lower prices for the producers.

Sources: Parenthetical Citation Given

Bahl, Sheetal "Will the Labor Arbitrage Advantage Disappear", Outsourcing Center,
http://www.outsourcing-journal.com/may2006-institute.html

Mitchell, Anthony. "Labor Market Analysis for offspring and Onshoring", CRM Buyer,
http://www.crmbuyer.com/story/54224.html

Hartmann, Chris. "Outsourcing Labor Offshore: Blessing or Curse?" Hospitality Trends,
http://www.htrends.com/trends-detail-sid-8156.html