Policy on Outsourcing
The current American public policy regarding outsourcing presents companies with incentives to move their business operation and functions abroad and through expansion the off-shoring of labor that would have been rooted in the country. The current policy of outsourcing by American is not effective as it should be (Hira & Hira, 2013). While outsourcing has its benefits, the effects it has on the country are detrimental to the economy. It is rational to assert that the public policy concerning outsourcing is not effect since the negative impacts of the outsourcing are clearly visible. The current policy of outsourcing has enabled a lot of American jobs and business operations to be taken abroad. Outsourcing of major business operations that belongs the U.S has crippled the country’s economy.
The current policy of outsourcing does not present sufficient and effective regulation of the process of outsourcing of jobs by U.S –based multinational organizations. The existing regulations on outsourcing present the country to the negative effects of outsourcing rather than its benefits. Outsourcing minimizes job opportunities for the U.S citizen and labor force. Apart from the reduced labor force, outsourcing hurts the competitiveness of the country in the global economy (Hira & Hira, 2013). The current regulations should be updated and restructure to maximize the benefits of outsourcing instead of increasing its shortcomings to the country.
It is imperative to reformulate better and effective regulations on outsourcing so as to address the negative impacts coursed by outsourcing on the country’s economy. If I were the president of the country, I would amend the current policy to include policies that encourage U.S-based multinational companies to move back to the country. Additionally, I would close the current loopholes that exist in corporate tax. The loopholes make it straightforward for the multinational organizations to pay limited tax on their abroad functions and operation.
References
Hira, R., & Hira, A. (2013). Outsourcing America: What's behind our national crisis and how we can reclaim American jobs. AMACOM Div American Mgmt Assn.
