Considering the challenges resulting from the outsourcing of different jobs to the American labor force, I have just to state the obvious. Every American would concur with me in the argument that the soaring unemployment problem is partly a consequence of outsourcing. The employees coming into the United States from different countries on expertise basis render the American population jobless as they compete for jobs with the locals. Production should also not be outsourced due to its political, social, and economic implications. For instance, there are significant ethical and standardization differences as well as practices leading to loss of absolute control over the product.
The success of outsourcing to the American labor force is the increased need to study in the relevant fields. The positions being outsourced are rarely studied by the American population. Therefore, this has brought a challenge to the population to continue their education and in the relevant fields in order to remain relevant to the jobs available. However, there has been a significant increase in unemployment of the American population as an effect of the outsourcing of labor.
The Gross Domestic Product (GDP) also suffers from outsourcing of production. Outsourcing of production reduces the services and products once available in the United States by sending them overseas. Outsourcing of production reduces different components of GDP including business investment and imbalanced net export of commodities as there would be more goods and services entering into the country than the products leaving as exports. Additionally, since most people would be rendered jobless by moving production overseas, or people who would have worked in the firms if they were locally established would have potentially lost their jobs, outsourcing of production reduces the personal consumption expenditures of the American locals, thereby significantly reducing the GDP.
References:
1-800-INDIA: Importing a White-Collar Economy. Cyber City: Gurgaon, New Delhi. (n.d.). Retrieved from the Films on Demand database.
Is America Number One? Understanding the Economics of Success. Unemployment: America vs. Europe. (n.d.). Retrieved from the Films on Demand database.
