Question

Q1) Global outsourcing, is it bad? because US manufacturing jobs went to China or India at the expense of US labors.

Q2)Global outsourcing, is it good? because US business can take an advantage of cheaper foreign labors to survive like an introduction of new technology such as robot or computer or can attract insourcing from overseas.

Q3) Global outsourcing, is it ugly? because US business can exploit the sweat shops from overseas.

Q4) Global outsourcing, is it inevitable like new technology? The robot with artificial intelligence could replace human labors in the future.

Q5) Give us your personal verdict over Global outsourcing

（Each question has to be more than(5) sentences)

Answer 1

Q1

Global outsourcing is bad as it leads to aggrevating unemployment in US labor market as the foreign labor outsourced is cheaper and available at low cost and ready to work at lower wages than the domestic labor having the same skills required for a particular job.

American jobs are affected massively due to outsourcing leading to a lower standard of living as now they have to look for jobs they may not be qualified for. Also, domestic producers who cannot outsource will suffer from this shift as they will not be able to compete with such low prices.

Q2

Global outsourcing is good because US firms can take advantage of cheap labor to survive introduction of new technology or attract insourcing from overseas.

Comparative advantage is a vital phenomenon for firms operating in global markets and China has an advantage of providing cheap labor to US market which lessens their opportunity cost and makes US goods and services more competitive in global markets. This is a result of globalisation which is also responsible for technological innovations across the globe. At macro levels, it is highly beneficial for US business and investors.

Q3

Global outsourcing, is it ugly as US business can exploit the sweat shops from overseas. It is definately ugly to spread the idea of sweat shops which a mere workshops where manual labor works at minimum wages and poor conditions. It has led to criminalized activities across the globe like child labor and it is spreading worldwide as US businesses wants to produce goods at cheaper costs and these manual laborers are vulnerable to fall prey to such a trap.

Q4

Global outsourcing is inevitable as new technology or innovation is indespensible. One cannot turn a blind eye to the huge global market full of participants who are looking forward to invest in new technology or promote an innovative future while capital replaces labor . For example, Artificial intelligence is one such getaway which will lower the dependence on human labor in the future. In such a scenario, the countries providing services will be negatively affected and have to look for other alternatives once such a technology breaks through in different parts of the world.

Q5

A personal verdict over Global outsourcing would be that at a macro level, it is benefitial for investors and consumers but at micro level, it harms the domestic labor markets which doesnot reveal its negative outcomes in the short run but the unemployment generated via outsourcing needs to be regulated in order to prevent any damage to real GDP.