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Outsourcing jobs to foreign countries has been going on for decades now and has proven quite successful. Many large companies that are deeply rooted in the fabric of many American families have chosen this course for their future. These same organizations are facing financial hardships caused by recent free-trade agreements and the subsequent success of foreign start-up companies. Outsourcing is the only answer for American companies struggling to compete globally.
The American people are well aware of the effects of outsourcing but seem to be mostly oblivious to the causes. A recent Gallop poll states “Sixty-one percent of Americans say they are concerned that they (or a friend or a relative of theirs) might lose a job because the employer is moving that job to a foreign country” (Agencies, 2004, Money section, ¶ 1). Outsourcing is a one way for enterprises to escape constricting government regulations and high corporate taxation. Other liabilities such as pensions and healthcare burdens are either reduced or removed from the company’s bottom line. Some enterprises could use the threat of outsourcing to aggressively negotiate labor agreements.
The advent of outsourcing brought many issues to light. Some of these are: political pressure, tainted corporate reputation, and the real threat of global instability (Musthaler, 2004). American companies are continuing to struggle to compete in the world marketplace because of increasing legacy costs, unfair tariffs on raw materials, and antiquated organized labor agreements. There are a plethora of issues for special interests to keep the attention of the voting public on outsourcing.
Politicians are trying to pass legislation that would make it illega ...