Outsourcing Is The Relocation Of Business Or A Part Of A Business

1313 Words Jun 5th, 2015 6 Pages
Offshoring is the relocation of business or a part of a business to another country. For example, some countries offshore their manufacturing process to a country that can offer lower wage prices. Offshoring is considered a disadvantage to United States because Americans lose their jobs to poorer countries. Another disadvantage is the fact that the United States can not observe the quality of the products when the process moves offshore. Offshoring can be viewed as an advantage to other countries because people can get a job easily. U.S companies that move factories to undeveloped nations barely pay employees enough to live on. It is unethical for employers to pay cheap wages to employees.

Offshoring began in 1979, when statistics showed 398,887 private manufacturing companies in the United States decreased to 342,647, which is a loss of 56,190 factories. Many businesses have relocated overseas since then and it still occurs today. Thirty-five U.S.-based multinational businesses have added jobs, but nearly three-fourths of those jobs were overseas. These companies employ over about 6.5 million workers worldwide. The Bureau of Statistics report shows about 12.9 million workers in 2009 to 2011 were replaced due to businesses offshoring to other countries. The decline in jobs associated with the Great Recession in United States that began in December 2007. Center on Budget and Policy Priorities reported that 8.7 million net jobs were actually lost during the last recession…

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