Is Outsourcing Beneficial or Adverse to the US Eco (go back »)

According to recent news, a bill authored by the Congressman Jerry McNerney of United States gives rise to some discussion. It wrote, "Tax loopholes that encourage corporations to ship jobs abroad would be closed ". Corporations outsourcing jobs oversea, e.g. some "tax haven countries" such as India, Pakistan will be punished in the proposal. However, this saying seems to arouse sentiments with people. Regardless of its reason, the fact is opposite to what said by the congressman, e.g. the gains brought by outsourcing outweigh the losses.

A research conducted by an American panel shows that American consumers, workers and business are benefiting from outsourcing.

Increased in products sales; Outsourcing reduces the enterprises' costs, makes things more cheaply so they will be more attractive and available to consumers. The investigation notes that globalization of computer hardware manufacturing led to a 10 to 30 percent decline in prices, making such equipment more affordable and leading to a far greater increase in jobs in the long run.

More focused on professional skills; Companies mainly outsource some non-core or low-tech jobs to others, which leaves the jobs calls for high-level skill to local people. They can have more time and energy to focus on the professional jobs, improving productivity. It can encourage more American people to learn these skills to ensure their individual competitiveness. In some sense, this is a means to enhance workforce quality.

Increased ability to pay government's tax fee. Giving jobs to workers in less developed countries improves the United States economically and increases trade for US products. Therefore, It also increases a company’s ability to pay tax fee to the US government, which contributes greatly to a country's revenue.

Come to the conclusion, outsourcing is not what the popular belief is--it gives a lot of jobs to foreigners and it deprives local people of job opportunities (though it is the fact somewhat) and so outsourcing is adverse. Thus, from a broaden vision, the benefits or advantages outsourcing brings to US are much more than the disadvantages.

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