Question

Summary:

       The country focus explains that ‘offshoring’ has become a trend for white collar job positions. The expectancy of globalization has become a problem because the loss of jobs on our home country. The idea of labor positions or better referred as ‘blue-collar’ positions where more popular and helped free trade because it helped countries with low-wages. The more high-skilled and wage worthy ‘white-collar’ where traditionally performed in the U.S but due to the slow economy these had to be transferred to countries such as India, and the Philippines. The company’s spokespersons explain that the cost of performance is cheaper and allows for profit to be generated for the company. The IT specialists and drafting positions have been replaced in these developing countries because they are paid twenty-dollar an hour while at our country it would cost a hundred (Hill, 2011). The companies that have taken the steps to this transition are Bank of America, Fluor, and Procter and Gamble proving that offshoring helps increase profit but also increases unemployment rates in the U.S.

Reread the Country Focus “Moving U.S. White-Collar Jobs Offshore.”

b)Will developed nations like the United States suffer from the loss of high-skilled and high-paying jobs?

Answer 1

b) Will developed nations like the United States suffer from the loss of high-skilled and high-paying jobs?

This hot issue is a highly sensitive one for many Americans—especially those who have seen their once secure jobs being shipped offshore. Many will probably know someone who has suffered from this very situation, and may claim that companies have lost all loyalty to their employees and simply become profit seekers. Other however, may point that companies are in business to make a profit, and do well for other stakeholders such as investors. Some will simply argue that the loss of white-collar jobs is merely a manifestation of companies viewing the world as a borderless market—where they seek resources wherever they are cheapest, produce in the optimal location, and sell wherever there is demand.

Initially developed nations like the United States will suffer from the loss of high skilled and high paying jobs to countries as unemployment will increase. However, when costs are lowered, these companies will have a more competitive advantage globally. Revenues and profits increased, and the company will have more resources to expand hence, as company grows, jobs will be created. Jobs that are not outsourced will also increase thus creating new employment opportunity in developed nations like United States.

Critics caution that while executives are under extreme pressure to cut costs, some of them may be too quick to outsource jobs higher up on the spectrum of creativity and skill. Companies are training developing nations' workforces to become America's competitors.