Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.
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Transcript of Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.
![Page 1: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/1.jpg)
Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson
![Page 2: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/2.jpg)
OUTSOURCINGIs it good or bad for the U.S. economy?
China
Mexico
Ireland
India
![Page 3: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/3.jpg)
Our Contention
Outsourcing is GOOD for the U.S. Economy.
![Page 4: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/4.jpg)
The Rundown
• What is Outsourcing?
• Why Outsource?
• History and Trends
• Positive and Negative Effects
• Issues to Consider
• Conclusion
![Page 5: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/5.jpg)
What is Outsourcing?• Outsourcing is the act of moving domestic jobs (but
not the people doing them) to foreign countries.
![Page 6: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/6.jpg)
Why Outsource?
Because of Comparative Advantage!“It is the maxim of every prudent master of a family, never to attempt to make at home what it will cost him more to make than to buy...If a
foreign country can supply us with a commodity cheaper than we ourselves can make it, better buy it of them with some part of the produce of our own industry, employed in a way in which we have
some advantage.”
–Adam Smith, The Wealth of Nations (1776)
![Page 7: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/7.jpg)
History of Outsourcing• Outsourcing Has Existed For A Long Time
– The British Empire and Textiles• The Textile Industry in India and the U.S.
• More Recently...U.S. Outsourcing– Manufacturing
• Clothes• Auto Parts• Computers
– Services• IT Services and Y2K• Customer Support
![Page 8: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/8.jpg)
Outsourcing Trends
![Page 9: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/9.jpg)
Positive Effects
• American Firms– Increased Profits through Reduced Operating Costs– More Competitive on a Global Level
• Americans– Cheaper Goods and Services
• The Nation– Better Overall Standard of Living– Peaceful Relationships with Other Countries
through Aligned Economic Goals
![Page 10: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/10.jpg)
![Page 11: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/11.jpg)
Negative Effects
• American Firms– Customer Backlash (Poor Service)– Employee Relations (Job Insecurity, Unions)
• Americans– Job Loss– Wage Reductions
• The Nation– Industry Standards of Foreign Countries– Human Rights Violations (i.e. child labor)– Security Concerns (Russia vs. Georgia?)
“President Bush is on an eight-day tour of Asia. He’s visiting American jobs.” –David Letterman
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Issues to Consider
• Reality vs. Perception– Outsourcing Vilified?
• Short-Term vs. Long-Term– Net Effect on Jobs– How We Educate Our Workforce
• Free Trade vs. Protectionism– Politics of Outsourcing
• American Workers = American Voters
– Diplomatic/International Conflicts
![Page 13: Spencer Coan, Priyanka Jain, Olakunle Oyewo, Chris Swanson.](https://reader036.fdocuments.in/reader036/viewer/2022062407/56649e0b5503460f94af3755/html5/thumbnails/13.jpg)
Conclusion
• Outsourcing is inevitable.– How Americans Respond to Outsourcing will Determine
Whether the Overall Effect is Good or Bad for the U.S.
• America can and will capitalize on the effects of outsourcing if it:– Maintains an Economic System that Supports Innovation– Renews its Focus on Education– Commits to Retraining the Workforce
• Question (make it a good one)?