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Outsourcing

History Outsourcing began long ago but first became common during the industrial revolution where european industries would outsource certain jobs such as accounting, engineering, legal needs, etc to private firms in their country. Offshore outsourcing began in the mid 20th century. This started because modern technology made it easier to communicate and travel across the globe and it was cheaper to outsource the labor to developing countries and just import their goods and so companies started sending factories out there. Offshore outsourcing became much more popular with free trade agreements because now the factories could send imports into the U.S. and thus they could lower prices because they wouldn't have to pay taxes for importing the goods.

Should we allow outsourcing or should we have companies sacrifice profit and keep jobs in America?

Current State of Outsourcing Offshore Outsourcing has icreased a great deal over the past few years due to globalization and modern technology making it cheaper for companies to send jobs over seas and increasing their profit margin.

Legislation affecting outsourcing Outsourcing has really started to kick in recently with recent free trade legislation. Legislation such as NAFTA or the North American Free Trade Agreement that created free trade between Mexico, Canada, and the United States. These free trade agreements generate offshore outsourcing because companies can move their factories to any of these countries or other countries with free trading and not have to fear paying taxes or tariffs on their goods so that they can ship their goods here cheaper and coupled with a cheaper labor force in other countries, these companies make much more profit.

Possible solutions to Outsourcing We as americans could deal with outsourcing many different ways. One way would be if we created legislation that outright banned offshore outsourcing, however that would be controlling and un-american. We could just let businesses do as they please and outsource as much as they want but this could destroy our economy if many jobs go over seas. Or we could impose a tariff on companies that outsource or we could give tax breaks to companies who don't outsource in an effort to bring jobs back to American workers, however, outsourcing provides cheap labor and cheap products.

 

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