Outsourcing Of Manufacturing Activities Positive And...

MBA 542 SEMINAR IN GLOBAL BUSINESS Outsourcing of Manufacturing Activities: Positive and Negative Economic and Social Impacts Laura Caiafa 06/21/16 [Type the abstract of the document here. The abstract is typically a short summary of the contents of the document. Type the abstract of the document here. The abstract is typically a short summary of the contents of the document.] Table of Contents Introduction 2 Analysis 3 Economic Impacts 3 Social Impacts 8 Conclusion 10 References 11 Introduction For United States businesses, there are several advantages and disadvantages of outsourcing US manufacturing activities to other countries. Some of these advantages include lower labor costs, fewer regulations,†¦show more content†¦(Ashe-Edmunds, 2016) (Mattern, 2007) These disadvantages negatively affect the U.S. economy by an increasing rate of job loss for blue-collar American workers, unfair wage competition, and quality products getting replaced by low quality consumer goods. Some negative social impacts of outsourcing include exploitation of labor and pollution. Though there are many advantages for U.S. Businesses, having analyzed the economic and social impacts on individuals living in the United States, I am not in favor of outsourcing manufacturing activities to other countries. The most critical impact in my opinion is the increasing loss of jobs for United States workers due to outsourcing of manufacturing activities. Analysis: Economic Impacts U.S. businesses can benefit by outsourcing manufacturing efforts. One major advantage is significantly lowering labor costs. This includes cost of salaries, wages, and employee benefits such as health insurance and retirement packages. (Ashe-Edmunds, 2016) â€Å"The average hourly wage for Chinese manufacturing workers is less than a tenth of their average U.S. counterparts, according to the Bureau of Labor Statistics† (Borren, 2014). These savings are astronomical for businesses and can be spent elsewhere. Other advantages include fewer regulations such as labor conditions and waste disposal,