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This posting should be a minimum of one short paragraph and a maximum of two paragraphs. Word totals for this post should be in the 100–200-word range. Whether you agree or disagree, explain why with supporting evidence and concepts from the readings or a related experience. Include a reference, link, or citation when appropriate. Preparation Few topics associated with global trade are more vehemently debated than outsourcing.

For this discussion, you will watch two video clips that provide some perspective on outsourcing. Using the information you gain from the videos and the materials you studied in the course module, respond to the discussion question below.

Discussion Select ONE of the following perspectives on outsourcing, and answer the related questions. Although your opinion is always valued, be sure to support your opinion with facts obtained from your course materials, the videos, or a reliable source. Make sure to cite your sources.

Paper For Above Instructions

Outsourcing is a topic that often evokes strong opinions, especially regarding its implications for consumers, efficiency, and international dynamics. For the purpose of this discussion, I will focus on the perspective of consumers and argue that outsourcing benefits them significantly. As consumers, one of the most apparent advantages of outsourcing is the reduction in prices—an outcome driven primarily by the lower costs of labor in developing countries. According to a report by the McKinsey Global Institute (2017), outsourcing jobs to nations where labor and production costs are lower can lead to substantial savings, which companies frequently pass on to consumers in the form of lower prices.

When companies outsource, they reduce operational costs significantly, which can be attributed to cheaper labor and less stringent regulatory environments in some developing countries (Bhagwati, 2004). This enables firms to offer products at more competitive prices. A notable example can be seen in the technology industry; many consumer electronics are manufactured in countries like China and India, where production costs are significantly lower compared to the United States. This results in affordable electronics for consumers, helping to democratize access to technology.

Furthermore, outsourcing fosters innovation as companies focus their resources on research and development rather than on production (Lecraw, 1993). This shift allows for enhanced product offerings, ultimately benefiting consumers. For instance, by outsourcing manufacturing processes, companies can invest more in creating innovative products, which can elevate the overall consumer experience.

However, the benefits of outsourcing are often overlooked in light of the fear of job loss in developed countries. Critics argue that outsourcing may lead to unemployment among skilled workers (Blinder, 2006). While this perspective has merit, it is essential to recognize that the economy continually evolves. Just as some jobs become obsolete due to outsourcing, new opportunities arise in the form of jobs related to higher-value products and services in developed economies. Job displacement does not necessarily equate to economic decline; rather, it is a transformation that encourages workforce adaptation to meet changing market needs (Levy & Murnane, 2004).

Importantly, outsourcing has also become a crucial aspect in the global market, interconnecting economies and promoting international cooperation (Rodrik, 1997). By outsourcing production to different countries, businesses create a web of interdependence that can enhance diplomatic ties and economic collaboration. The global supply chain has become a cornerstone of international trade, which can, in turn, build political stability and peace between nations as they become increasingly reliant on each other financially.

In conclusion, while outsourcing is a contentious issue, the benefits to consumers are substantial, primarily through cost reductions and increased product availability. By looking at the evidence, it is clear that outsourcing plays an essential role in the modern economy, driving efficiency and fostering innovation, all of which ultimately benefit consumers. As we continue to engage with this topic and explore its complexities, it’s vital to embrace its implications while considering requisite changes to the workforce that can spur growth and resilience in our economies.

References

• Bhagwati, J. (2004). In Defense of Globalization. Oxford University Press.
• Blinder, A. S. (2006). Offshoring: The Next Industrial Revolution? Foreign Affairs.
• Lecraw, D. (1993). Outsourcing: A Global Perspective. International Journal of Production Economics.
• Levy, F., & Murnane, R. J. (2004). The new division of labor: How computers are creating the next job market. Princeton University Press.
• McKinsey Global Institute. (2017). The future of work in America: People and places, today and tomorrow.
• Rodrik, D. (1997). Has Globalization Gone Too Far? Institute for International Economics.
• Gereffi, G., & Frederick, W. (2010). The global apparel value chain: What arte the roles of the buyers? Global Value Chains in a Changing World.
• Appelbaum, E., & Gittleman, M. (1991). Is Structural Change in the Economy Changing the Nature of Work? Work and Occupations.
• Friedman, T. L. (2005). The World Is Flat: A Brief History of the Twenty-first Century. Farrar, Straus and Giroux.
• Levitt, T. (1983). The Globalization of Markets. Harvard Business Review.