Is the breakdown of American family values causing our jobs to be outsourced to China?
Answer:
Americans would rather buy "Made in China" than "Made in USA." B/c China pays their people little to nothing and makes them work long hours weekly. In which case, they produce more products and cheaper. Spend the few extra dollars and buy AMERICAN MADE! Here's a great website if you're interested...
http://www.boycottmadeinchina.org/...
No. Greed is
nope.. just the fact that chinese people work for $100 a month
No, it's because the Chinese will do it cheaper and with more attention to detail. Not that Americans aren't detail-oriented, it's just that the Chinese mentality is to never fail or meet substandard requirements.
Hi,
I feel that the breakdown of American family values is an important issue, but not one that would cause people to lose their jobs to India or China. Outsourcing is done mostly to cut costs, educated people are available at 1/10th the salary here in India as compared to the US. I am an Indian and the number of BPOs that have opened shop here is not even funny. Mainly the reasons for outsourcing work to other countries are:
* Lower costs due to economies of scale
* Ability to concentrate on core functions
* Greater flexibility and ability to define the requisite service more readily
* Specific supplier benefits. For example, better security, continuity, etc.
* Higher quality service due to focus of the supplier
* Improved internal management disciplines resulting from the exercise itself
* Less dependency upon internal resources
* Control of budget
* Faster setup of the function or service
* Lower ongoing investment required in internal infrastructure
* Greater ability to control delivery dates (eg: via penalty clauses)
* Lack of internal expertise
* Increase flexibility to meet changing business conditions
* Purchase of industry best practise
* Improve risk management
* Acquire innovative ideas
* Increase commitment and energy in non core areas
* Improve credibility and image by associating with superior providers
* Generate cash by transferring assets to the provider
* Gain market access and business opportunities through the supplier’s network
* Turn fixed costs into variable costs
Far from being bad for the US, outsourcing creates additional net value for the US economy that did not exist before. When $1 of labor cost is outsourced from the US, the total value created globally is $1.45 to $1.47. Out of this, the receiving country, India in this case, captures just 33 cents. The remaining $1.12 to $1.14 is captured by the US in terms of new revenues (the receiving country buys goods and services from the US), repatriated earnings, and redeployed labor. And a growing economy creates new jobs
A rise in corporate profits is good for the US economy as a whole. The benefits of offshore IT outsourcing added $33.6 billion to real gross domestic product in the United States in 2003. By 2008, real GDP is expected to be $124.2 billion higher than it would be in an environment without IT software and services offshore outsourcing.
Traditionally, the US economy has been a huge job creating machine. Over the last 10 years, the economy has created an average of 3.5 million new jobs a year, and the vast majority of displaced workers are re-employed within six months.
This has been true even during times of great change. Between 1983 and 2003, two million manufacturing jobs were lost in the US. But 36 million new jobs were created in services. Many of these were jobs that people didn't know even existed before.
Despite the present lull in the job market, researchers expect that trend of innovation and job creation to continue.
Some industry associations and economists have reacted skeptically to these estimates. They argue that it is dangerous to assume that the US has better trained, harder working or more innovative workers capable of higher value added work than its foreign competitors.
True. Workers elsewhere can be as smart, as hard working, and as innovative.
But the US has more opportunities than its competitors. The fallacy is to assume that there are only a fixed number of jobs in the economy and when a job is sent offshore, a US worker is rendered permanently jobless.
Over a 10 year period from 2000-2010, McKinsey expects that while two million service jobs will be lost through offshore outsourcing, 22 million new jobs will be created. Technology and medicine are expected to be major drivers for job creation.
US workers have more opportunities because their economy is growing and new and fresh jobs are being created to more than replace the ones that have gone away. They have more opportunities than anyone else to acquire new skills, and more opportunities for acquiring the jobs that accompany the growth in the economy.
No. The problem is noy because of any breakdown of family values that is leading to outsourcing. America has always been a champion of individual liberty and freedom. As consumers, the americans have veen exercising this freedom to maximising individauls satisfaction from materialistic consumption, The only way to enhance consumer satisfaction is having as much competition in the market for goods and services. Competetion reduces costs, improves quality, draws after-sales service to the consumers. Therefore, American is the most open economy so far exports and imports are concerned. Imports from the cheaoest source around the World only benefits the consumers. Earlier mostly goods were being imported. Then import of cheap skilled labor began as America felt shortages of engineers and substantially increased as the information industry began to occupy a key to improved standard of living. millions of software personnel from abroad came to US to serve the needs of the American consumers. As technology made further stides, it has now become possible to import certain labor services directly from abroad rather than importing foreogn laborers. Certain services are now not required to be produced in the US by a lobor force in the US itself: such services can be imported via telecom and internet. Thus components of work that goes into services that American consumers consume can noe be produced abroad and shipped to US through cyberspace/ internet/ telecom technology infrastructure. And, such imports have become less costly than the cost of generating this service within the US with labor located in the US. Such imports are called BPO.
American consumers had a choice: not to insist on getting such services at the lowest cost/ forgo consumption of such technology based services. But this is a foolish choice to make for the consumers. The American consumers did not make such a selfinterest hurting choice.
American should realize that for many services products American is not internationally competitive. It is better to import call centre service rather than make 1-800- xxxxxxx call service centre in US located call centre factory/ office especially because of gains in labor costs of proding such call center services.
America needs to create more jobs in areas where US manufactured products and services are internationally competitive, given the relaively higher wages of American labor. There is no difference between importing a shoe from China or importing a service like answering calls from Us customers of US banks.
Avoid wrong analysis and wrong conclusions.
As an economist, I've never heard this cause cited as a reason for outsourcing, but I'd be very interested in hearing why you think that this might be true.
I suppose that a change in family values (i.e. fewer marriages, more divorce, less emphasis on having children, single-parent households, etc.) could impact the workplace in a number of ways, from work schedules to fringe-benefit requirements, but I'm not sure how that would necessarily lead to outsourcing to China, or anywhere else for that matter.
In general, international outsourcing is merely an outgrowth of domestic outsourcing, which occurs when firms choose to put a factory or a business in one city rather than another, because of relative advantages in costs, access to labor, natural resources, and tax incentives from local governments. So now, instead of moving a factory from a high-cost area outside of Chicago to a lower-cost town in Mississippi, multinational companies take the next step and look at their options worldwide.
As such, I just can't see where family values fits into this equation...
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