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Globalization: Offshoring and Outsoursing

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    Posted: 11 Apr 2012 at 00:43
I am writing a research paper on the effects  of offshoring and outsourcing on developed countries' economies specifically the U.S. economy. Any serious discussion (pros or cons) will be welcomed. If it is possible I want some reliable data (specially online source) on the subject to develop a better conclusion.

I have already studied these sources:
1.
http://www.businessweek.com/magazine/content/07_25/b4039001.htm
2.
http://research.upjohn.org/cgi/viewcontent.cgi?article=1031&context=empl_research&sei-redir=1&referer=http%3A%2F%2Fwww.google.com%2Furl%3Fsa%3Dt%26rct%3Dj%26q%3Doffshoring%2520statistics%26source%3Dweb%26cd%3D6%26ved%3D0CFAQFjAF%26url%3Dhttp%253A%252F%252Fresearch.upjohn.org%252Fcgi%252Fviewcontent.cgi%253Farticle%253D1031%2526context%253Dempl_research%26ei%3DUsKET_mFHYac2AX2n538CA%26usg%3DAFQjCNHmXO1ruifK2GBROwcPlJwfFLng8g#search=%22offshoring%20statistics%22
3.
"Offshoring:Will 25 percent of U.S. jobs end up overseas?" By Bruce watson, Dailyfinance.com
4.
"U.S. companies say offshoring has not cost domestic jobs, according to research from Duke University and the Conference board." By PRNewswire.com
5.
"When Americans no longer own America" by Thom Hartmann
6.
Watching greed murder the economy" by Paul Craig Roberts.

If you have any information or data that can help me either supportive or opposing, please mention it or provide a link here. Thanks

As I know there are a lot of wise and educated members still roaming around this forum. I think this thread can be a useful and informative for everyone.


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Post Options Post Options   Thanks (0) Thanks(0)   Quote Old Member Quote  Post ReplyReply Direct Link To This Post Posted: 01 May 2012 at 17:11
Since there is no activity in this thread I will start by pointing out some facts. Then you can add your point to them.

Causes of offshoring:
1. Cheaper labor
2. Competition in global market
3. Pressure from investors
4. Corporate greed
5. Being near and adopted to other potential markets.

Effects of offshoring:
1. Massive industrial, service related, and engineering job loss.
2. Less revenue for government in developed countries such as US, UK, France, etc
3. Security concerns specially about IT and call center related jobs (Lack of proper laws to protect consumer personal information in developing countries such as Philippines).
4. Low standards of production and labor condition in developing countries. (Such as use of hazardous material in production and less life-spam of products)
5. Rising unemployment and reliance of families on government subsidies.
6. Concentration of wealth in hands of few super rich while middle class families disappear and lower class submerges in debt and poverty.
7. Lack of job security and safe future for college trained workers, college students or educated workforce.
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fusong View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote fusong Quote  Post ReplyReply Direct Link To This Post Posted: 01 May 2012 at 21:12
how about this
 

http://www.nrdc.org/energy/oildrilling/
Every ideology has a kernel of truth and sea of whitewash.
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pinguin View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote pinguin Quote  Post ReplyReply Direct Link To This Post Posted: 01 May 2012 at 23:29
My personal oppinion.

Of course outsourcing and offshoring hurt people. Those were evil mechanisms invented by the hard capitalists to fight trade unions, labour rights, and also income taxes.

Capitalists don't care about people or countries, only about profits, and they move theirs business were they can pay the less and earn the more. As simple as that.

The times when industrialists build business thinking in theirs countries is over. You won't have an Henry Ford, anymore.

Finally, I believe the biggest mistake was done by the phylosophy of post-industrialization. In the 70s, several gurues preached that manufacturing was "out-of-fashion" and that we were heading into a "post industrial" age. As a result, the industry was moved to China, India, Mexico and other places, and now the developed countries must import most of what they consume, getting poorer day by day.

It is amazing that the developed countries have so many smart economists, but for predicting the future and planning the real important things, they are blind and they have no clue.










Edited by pinguin - 01 May 2012 at 23:30
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gcle2003 View Drop Down
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Post Options Post Options   Thanks (0) Thanks(0)   Quote gcle2003 Quote  Post ReplyReply Direct Link To This Post Posted: 02 May 2012 at 10:18
I suspect you need to draw a distinction between 'developed' countries that still subscribe to Ayn Rand/Friedman/Hayek style philosophies and those that recognise the need for communal supervision of economic practice.
Citizen of Ankh-Morpork.

Never believe anything until it has been officially denied - Sir Humphrey Appleby, 1984.

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Post Options Post Options   Thanks (0) Thanks(0)   Quote akshatsethi Quote  Post ReplyReply Direct Link To This Post Posted: 30 Aug 2012 at 07:03
The nice thing about outsourcing is that it can help you leverage your time.  I am currently looking for a virtual assistant, because I believe a good one can do administration tasks at a faster rate than I can for a lower hourly rate than what I charge for my time.  This will free me up to work on my business and generate more revenue.  This concept can apply to many tasks.  It took me a long time to come around to hiring things out, but now that I've done it with a few things, it's wonderful, and I am make so much progress in my business at a faster pace!
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