[Brielle Buckler]

Few topics associated with global trade are more vehemently debated than outsourcing. For this discussion, you will watch two video clips that provide some perspective on outsourcing. Using the information you gain from the videos and the materials you studied in the course module, respond to the discussion question below.

This video clip is from the film Outsourced. It covers American sentiment on losing jobs to India and the availability of Chinese goods. We want cheap stuff; however, most of it comes from China.

As countries like China and India become leaders in manufacturing, the costs of their expertise rises, diminishing their advantage against U.S. counterparts. At the same time, convoluted and increasingly risky supply chains dependent on inexperienced vendors have turned once stable brands like Boeing into the perfect “reshoring” case study. This video explains why outsourcing can be bad for business.

For Discussion
Select ONE of the following perspectives on outsourcing, and answer the related questions. Although your opinion is always valued, be sure to support your opinion with facts obtained from your course materials, the videos, or a reliable source. Make sure to cite your sources.

• The consumer: Does the consumer benefit? Are prices lowered by outsourcing? Why or why not?
• Efficiency and productivity: Does outsourcing enhance efficiency and productivity? Why or why not?
• Competition: Does outsourcing encourage competition? Is this a good thing? Why or why not?
• Developing countries: Does outsourcing benefit developing countries? Why or why not?
• International stability: Does outsourcing foster international cooperation, respect, and stability? Why or why not?

————

In order to receive full credit for this assignment, all components of this assignment are due by 11:59pm ET on Wednesday, August 2, 2023. You should first contribute a thoughtful post of your own before viewing/commenting on the posts of others. Students should review others’ submissions and comment meaningfully (refer to this guide from MSSU for reference) to at least two other students. For reference, here is the difference between a comment and a post — you will be using both for this assignment.

Once you submit your post, you must respond meaningfully to at least two other classmates’ threads. This assignment is worth a total of ten (10) points — 6 possible points for your original post, and up to 2 points for each of the two responses to your classmates’ posts. Please reference our Discussion Rubric for more information.

Source: Lumen Learning

• This topic was modified 1 year, 9 months ago by Brielle Buckler. Reason: Updated Links

[Hamidou]

The consumers: I feel like consumers do benefits from outsourcing because they can get the same things for cheaper if it is produced elsewhere. Prices are lowered by outsourcing because the cost of materials and labor is much cheaper elsewhere.

Efficiency: outsourcing doesn’t enhance efficiency because the cheaper made products are most likely to be bad quality and break down faster. However, outsourcing can increase productivity because you can produce more supply at a lower prices.

Competition: outsourcing does encourages competition because it lowers the barrier to entry into the market. This is a bad thing because while free market encourages competition it may hurt businesses that can’t keep up.

Developing countries: outsourcing does benefit developing countries positively. This is because it gives them the opportunity to grow their economy. It creates jobs and economic growth.

international stability: outsourcing creates partnership and relations with countries as it can benefits both of them positively.

Citiations:

• https://www.investopedia.com/articles/personal-finance/082815/unintended-consequences-outsourcing.asp
• https://www.cliffsnotes.com/tutors-problems/Operations-Management/48276904-Developing-countries-Does-outsourcing-benefit-developing
• https://www.linkedin.com/pulse/does-outsourcing-enhance-efficiency-productivity-nathan-keller

[Aboubacar Traore]

Nowadays, outsourcing is the way for most companies to delegate some functions or tasks in order to generate profit. On top of that, outsourcing benefits consumers, and developed countries, influences international stability, encourages competition, and increases productivity and efficiency.

Consumer: The importance of outsourcing for companies is to reduce the cost of their operations and labor. As a result, they would be conscientiously forced to lower the price of their goods or services, which is beneficial for consumers.

Developing countries:I’m going to focus on some ways to say that outsourcing can develop countries. When companies outsource their operations, that creates jobs, which is important for the foreign country in terms of economics. Moreover, outsourcers also invest, and work with local enterprises financially, which could fortify a local economy. Finally, they send a bulk of technology and skills to the local workplace.

International stability: Outsourcing increases the good relationship between two countries and their businesses. Internationally, when two countries interest each other economically, they could quickly end their conflict to avoid economic disruption. On the other hand, once countries share one economic goal, they will have respect for each other in order to preserve their profit.

Competition: Once companies have decided to extend their goods or services into foreign countries, they will face strong competition with the local firms in the market. That competition is good because it would push outsourcers to improve their offers, reduce their cost, and provide good quality to gain clients’ credibility.

Productivity and efficiency: Outsourcing enhances productivity because of the lower price of labor cost. Another way to prove that outsourcing enhances productivity is the lower quality of local goods or services, which enables them to increase their productivity. On top of that, efficiency is one of the qualities of outsourcing to obtain clients’ attention, so outsourcing does enhance efficiency.

https://conceptdrop.com/blog/who-benefits-from-outsourcing/

What is Outsourcing and How Does it Work? (techtarget.com)

• This reply was modified 1 year, 8 months ago by Aboubacar Traore.

[Allan Pinedo]

Hi Aboubacar

I agree with you the benefits of outsourcing have been demonstrated to benefit businesses, consumers, and developing nations all at once. Costs are decreased, jobs are created, international stability is supported, healthy competition is encouraged, and overall productivity and efficiency in the global market are increased.

 

[Aboubacar Traore]

hello Hamidou,

firstly, i’m sorry that I posted my post under your post instead of commenting your post. hope you will understand. second, I’m going to let you know that you made a wonderful research about your assignment, and i totally agree with. I learned a lot from your post.

[Amr Taha]

Hi Hamidou!

I agree with your points on consumer benefits and competition due to outsourcing. But I’d add that not all outsourced products are of lower quality – it can depend on the skills and facilities of the overseas providers. Also, competition might motivate businesses to innovate and remain viable.

[Brielle Buckler]

Great point, Amr! Not all American-made goods are the best of the best in terms of quality. While it is true that fast fashion, for example, often uses lesser materials in their production AND outsources much of that production overseas, the two are not always correlated.

[Tamala Jones]

Hi Hamidou,
I really enjoyed reading your response it was well written. However, I don’t agree that when outsourcing encourages competition it’s always a bad thing because it also helps the businesses that need more recognition for their good quality products for the same or cheaper cost. This will also maybe encourage the businesses who lost out to start selling more better quality products.

[Brielle Buckler]

Thanks for this perspective, Tamala! Competition can be a very good thing! It helps to regulate businesses and commerce across industries. If, for example, McDonald’s had no competition from other fast food restaurants, it could charge $20 for a Big Mac, and those who are looking for fast service food might have to pay that price if they wanted that food!

[Rasheeda Noel]

I kind of agree with you on this. I also thing that companies may get the best hand when it comes to pricing. When i began my company, Funny Stitches, I decided to get affordable, but great quality ingredients for my customers. Thankfully, I was able to gain a profit from my products because of my deep research so I won’t be making a big dent in my own pockets or will I hurt my customers’.

[Rotem]

Although outsourcing has the potential to improve business efficiency and production, it is not an absolute guarantee and may not always produce the desired results. There are a lot of obstacles and challenges that can negatively affect the desired results:

• Outsourcing is shifting due to salary increases in some nations. Wages in classic outsourcing locations like China and India have been rising rapidly.
• In recent years, the company GE has engaged in “reshoring,” which means bringing back some production to its home country (the US). Economic considerations like shipping expenses might affect outsourcing’s cost-effectiveness. If these factors change sufficiently, companies like GE may find it more profitable to produce some products locally rather than overseas.
• Outsourcing may also make limiting control over essential procedures and deadlines. Lack of control can cause delays and quality issues.
• An additional risk is when a corporation must work closely together with its vendors in outsourcing activities or projects. This collaboration expects to share information regarding procedures, workflows, and project needs. Thus, the outsourcing provider receives visibility into the organization’s internal operations.

In conclusion, while outsourcing has the potential to enhance business efficiency and production, it is not a guaranteed solution and comes with its share of obstacles and risks.

[Aboubacar Traore]

Hello Rotem,

I agree with you, very clear, organized, and instructive idea.

[Jingtong]

I learnt a lot and I agree with you.

[Hamidou]

You are right outsourcing doesn’t always show positive results. Quality over Quantity.

[Jacob]

Hi, very organized and from your additional information I simply agree with your context and structure.

[Amr Taha]

Hi Rotem!

I agree with your points on outsourcing, especially about losing control over key operations. Reshoring can indeed be more cost-effective as labor and shipping costs change. But there’s also the risk that relying too much on outsourcing might slow innovation. in addition to the potential security risks when sharing internal details with outsourcing providers. Thanks for your thoughts!

• This reply was modified 1 year, 8 months ago by Amr Taha.

[Carinah]

Does outsourcing encourage competition? Yes
Is this a good thing? I believe so, yes
Why is it? In my opinion it can increased efficiency and productivity: This efficiency gain can drive businesses to improve their internal processes and operations to remain competitive in the market. Focus on core competencies: By outsourcing non-core activities, companies can focus on their core strengths and areas of expertise. This increased focus can lead to better products or services, driving competition based on quality and innovation.
It improves efficiency, cuts costs, speeds up product development, and allows companies to focus on their “core competencies.” And for the most part, they are right. Outsourcing has helped American companies deal with the destructive forces of globalization; that is, the intensification of competition and the price and profit erosion associated with it. For some companies, outsourcing has made the difference between staying in business and going out of business. But, as with every other business strategy, outsourcing has its own limitations and “unintended consequences” that if not addressed, can turn it into a bad business strategy.
https://www.investopedia.com/articles/personal-finance/082815/unintended-consequences-outsourcing.asp
https://www.forbes.com/sites/panosmourdoukoutas/2011/12/09/the-unintended-consequences-of-outsourcing/

[Brielle Buckler]

I love your thought about a company’s “core areas of expertise” — sometimes it makes much more sense for a manufacturing plant to manufacture goods and for that plant to outsource accounting services to an accounting firm.

[Briana Lima]

We are consumers and purchase goods from varying companies on a daily basis. The first company that came to mind when studying this module was the popular, SHEIN. Myself, and many other women purchase trending items of clothing from SHEIN for remarkably low prices. While the shipping time may be longer than companies within the US like Amazon or Old Navy, they offer free shipping and discount codes on almost every order, making it hard to turn away from the app. The originally Chinese-based company relocated their headquarters to Singapore after it became a huge hit, with apps like TikTok promoting their trendy pieces for half the price. Their clothing, shoes, and household items are offered at such a cheap prices because they outsource their labor to warehouses in China and other countries around the world.  The working wage for seamstresses and manufacturers are significantly cheaper in these countries than Western countries. In my opinion, the consumer mostly benefits because of the amount of items you can purchase for half the price of what you would pay for one to two items at another retailer. However, because of the mass production and increasing demand for product, the clothes are typically not “great” quality. What you would buy from Old Navy, would likely last you for about two to three years, while clothing items from SHEIN, typically do not hold up well after a few washes and are likely to wear and tear. Rees mentions in her article on Make Use Of that “fast-fashion brands like SHEIN use lower quality materials to produce their clothing” further supporting my stance. It also becomes a personal choice of whether or not you choose to support a business like SHEIN where working conditions in these warehouses may not be fair.

https://www.makeuseof.com/where-does-shein-ship-from/

https://financialpost.com/financial-times/shein-the-chinese-company-storming-the-world-of-fast-fashion-with-a-little-help-from-tiktok

[Ingrid]

I agree with this because SHEIN and TEMU are used by many

[Ingrid]

I personally feel like outsourcing is good because it can help other countries such as India and China that have such a big population have more job opportunities and it can really reduce competition with other big companies. Companies like SHEIN which is used all around the United States is one , people nowadays want to buy a big amount of clothing for a cheaper price . I say this because I also shop and tend to look for offers like discounts and free shipping.

https://www.wired.com/story/fast-cheap-out-of-control-inside-rise-of-shein/

• This reply was modified 1 year, 8 months ago by Ingrid.

[Amr Taha]

Hi Briana!

Great points about SHEIN’s outsourcing. I agree that their low prices and extensive product range can be very appealing to consumers. But, as you’ve noted, the quality of their products often leaves much to be desired.I think it’s essential for people to be informed about the companies they buy from and the practices these companies use.

• This reply was modified 1 year, 8 months ago by Amr Taha.

[Brielle Buckler]

Fast fashion is so polarizing, Briana! Many consumers favor SHEIN and other brands like it because of the inexpensive items, but you’re right — they’re often not made of quality materials and break down quickly. The high supply meets demand, however, and if fewer people wanted those items, SHEIN would not be able to survive.

[Jingtong]

Outsourcing benefits developing country.

Firstly, outsourcing can create a significant number of job opportunities, thus promoting economic growth in these nations. Many developing countries, such as China and India, have large populations, leading to intense competition for employment. Outsourcing can reduce this competition by providing additional job opportunities.

Secondly, foreign investment associated with outsourcing results in a flow of capital, which can be used to improve local infrastructure.

Thirdly, the introduction of outsourcing industries allows developing countries to diversify their economies, moving away from over reliance on a single economic sector and promoting economic diversification.

Lastly, outsourcing can foster globalization, leading to opportunities for international trade.

Citations:

https://www.fairtradeoutsourcing.com/blog/how-outsourcing-can-drive-economic-growth-in-developing-countries/

https://www.jstor.org/stable/2118130

https://www.un.org/development/desa/pd/sites/www.un.org.development.desa.pd/files/undesa_pd_2022_policy_brief_population_growth.pdf

[Briana Lima]

Hi Jingtong,

Well said. Outsourcing not only benefits the consumer, but also the country. Like you said, the large populations in China and India benefit from the influx of job opportunities that are presented in these scenarios. Economic diversification is important in developing countries. It allows them to transition away from oil, minerals, etc.

[Brielle Buckler]

Great points, Jingtong! A previous student shared his family’s personal experience working in a factory in Bangladesh and confirmed what your source suggests: that sometimes in rural and overpopulated communities, offshoring creates economic opportunities that previously didn’t exist.

[Mahir Khan]

Consumers can be impacted both positively and negatively by outsourcing. Consumers can benefit from outsourcing in several ways, such as:

• Products can be offered at a much lower price, as outsourcing can decrease production costs.
• Expediate delivery times, as companies can take advantage of time zone differences and optimize their supply chains.
• Can improve the quality of products, as they outsource their manufacturing or other operations to specialized firms. They can take advantage of their expertise and technology to improve the quality of their products.

The negative impacts of outsourcing can be:

• Quality issues, if the outsourcing partners do not meet the standards or expectations of the consumers.
• Customer service issues, if the outsourcing partners do not communicate effectively or handle complaints well.
• Moral and ethical issues, if the outsourcing partners do not follow the social, religious, cultural and environmental norms of the consumers.

https://www.anewswire.com/how-to/does-the-consumer-benefit-from-outsourcing/

 

[Williams Paul]

i agree with you that consumers can be impacted both positively and negatively

[Aboubacar Traore]

by reading your research about outsourcing, I learned a lot and totally agree with your idea

[Carinah]

I agree with you it definitely have both positive and negative effect. Outsourcing may raise issues related to the protection of intellectual property rights, especially when companies outsource research and development or sensitive tasks. This can hinder competition and innovation in the long run if companies are hesitant to share critical information.

[Rotem]

Hi Mahir,

I like your comment. I think it’s great that you’ve shown both sides of the issue.

Outsourcing can have a lot of good things about it. Still, you also pointed out the bad things that could happen, which I agree with because when a business decides to outsource, it is very important for them to choose partners who are dependable and responsible and who share their values and standards.

[Tamala Jones]

Hi Mahir,
I think you did a great job with your answers it shows that you understand the topic. I also can personally understand what you are talking about when you talk about the negative impacts of outsourcing since I’ve dealt with quality issues as a business owner when outsourcing. Also because where I work the company has also dealt with some quality issues when outsourcing.

[Ingrid]

i agree with this because not everyone is looking for quantity but quality as well.

[Toi Chotoosingh]

Hi Mahir,

I agree with your post. Products would be offered at a much lower cost due to competition, and the different time zones can absolutely be advantageous to a company. Also, the quality of goods would improve by them taking advantage of their expertise and technology

[Brielle Buckler]

I love your point about specialization, Mahir. Not all outsourcing or offshoring is to find a “cheaper” option — often it’s to utilize skills that another firm or labor force possess instead of trying to develop that within your own organization.

[Allan Pinedo]

Competition: I believe it’s a good thing because by effectively allocating labor and reducing costs for businesses, outsourcing promotes competition and increases profitability and global competitiveness. Businesses can concentrate on their core competencies, enhancing productivity, and innovation. Less expensive goods and services benefit consumers as a result of lower production costs. Outsourcing supports cross-border economic growth and development while also promoting global economic integration.

[Allan Pinedo]

here is the source:https://www.investopedia.com/articles/personal-finance/082815/unintended-consequences-outsourcing.asp

[Tamala Jones]

The consumer: In my opinion, the consumer does benefit when it comes to outsourcing because consumers can get products for cheaper prices when products originally come from a foreign country rather than from the U.S. If we look at the video once again the lady states that she knows of an “ American company that makes an eagle statue very similar to ours. Same size, same materials only theirs is made 100% in America” As the short clip continues she tells the customer that the catch is that the American company’s price is $212 more than theirs. Now this video comes from the film Outsourced but it shows a good example of pricing if outsourcing would have not been used. The whole point of outsourcing is to save money while still getting the same amount or more products created for a lower price. For example, if you want to sell something on Amazon it is better to get your item from a Alibaba.com vendor that way it’s cheaper and you can spend less money to sell the product and can get more of a profit or if you want to buy something from Amazon if they have it on Shein it’s better if you look on their first because most likely it’s cheaper.

Examples:
First video: https://youtu.be/win-EzAX5Fc

Amazon towel band 4 pack ($11.99) : https://www.amazon.com/Towel-Bands-Pack-Better-Option/dp/B097GNRT3Y/ref=asc_df_B097GNRT3Y/?tag=hyprod-20&linkCode=df0&hvadid=532762220071&hvpos=&hvnetw=g&hvrand=3746798037019625816&hvpone=&hvptwo=&hvqmt=&hvdev=m&hvdvcmdl=&hvlocint=&hvlocphy=9004339&hvtargid=pla-1414052740789&psc=1

SHEIN towel band 4 pack ($3.00): https://us.shein.com/2-4pcs-Towel-Bands-Towel-Fixing-Straps-Elastic-Beach-Chair-Towel-Clips-Windproof-Towel-Holder-Silicone-Rubber-Bands-Straps-For-Beach-Chairs-Pool-Chairs-Cruise-Chairs-More-Suitable-For-Bundling-Messy-Clothes-Towels-Quilts-Books-Laptops-p-17846750-cat-3070.html?onelink=3/2tvvs3b0hxjc&requestId=374235322445758490&url_from=adplash23061375961599774pcs_GPM&cid=17037697641&setid=&adid=&pf=GOOGLE&gbraid=0AAAAADm0yO6Q0FTgGaqhKuFx0GFBpVGqC&gclid=Cj0KCQjw2qKmBhCfARIsAFy8buI-DVF-EUCjY1ytoilxeChS35MEZeKT4j4HwV5r30q-FkmDU-8iPqAaAi1fEALw_wcB

• This reply was modified 1 year, 8 months ago by Tamala Jones.

[Williams Paul]

Very well put, I think you make a great point here.

[Jingtong]

I absolutely agree. Outsourcing is to save costs and lower prices to help some people in need.

[Hamidou]

Your example is great. Shine and Alibaba is a place where you by directly from a manufacturer. While Amazon is there is a middleman.

[Carinah]

Well said. Outsourcing is a way to get cheaper for less and encourage companies to do better hence the competition comes in. Some smaller companies now have to keep up if they can or otherwise might go out of business for several reasons.

[Toi Chotoosingh]

Hi Tamala,

I agree with what you said. Outsourcing is a good way to have cheaper products for consumers and to pressure companies into doing better to make themselves more appealing to consumers.

[Brielle Buckler]

You make some good points, but you’re missing one key element, Tamala: outsourcing does not always mean offshoring. For example, a factory in Detroit that manufactures Ford automobiles might outsource the accounting function to an accounting firm in New York. That’s outsourcing, but not offshoring to another country. Further, this doesn’t necessarily mean the labor is cheaper, but it does mean that the factory does not have to spin up and build an accounting function; they can simply rely on the experts who already do that as their core competency.

[Williams Paul]

After watching the video contracting out has many advantages, but it also has some drawbacks. Outsourcing can either improve the consumer experience or not. Companies are allowed to expand their American job openings thanks to outsourcing. According to the video, the combination of jobs enables the local population to find good, competitively paying jobs. In addition to allowing people to obtain jobs, it also emphasizes the need for education in order to obtain these positions. A good trade strategy to increase skill, reduce expenses, and hasten output productivity is outsourcing. Contracting out, in my opinion, helps developing nations because it demonstrates that the jobs people there achieve aren’t low-skilled and, over time, call for little in the way of formal education. I recall that outsourcing is wise because it makes sense to pay someone in the United States to do a task that could be done by someone else for a similar wage overseas. Everyone benefits from the habit: Businesses receive more products faster, tasks are completed, and customers receive better customer service and probably pay less for their purchases.

[Brielle Buckler]

How do companies “expand their American job openings thanks to outsourcing”? It seems that you’re confusing offshoring and outsourcing. Here’s the example I shared with your classmate above:

For example, a factory in Detroit that manufactures Ford automobiles might outsource the accounting function to an accounting firm in New York. That’s outsourcing, but not offshoring to another country. Further, this doesn’t necessarily mean the labor is cheaper, but it does mean that the factory does not have to spin up and build an accounting function; they can simply rely on the experts who already do that as their core competency.

Make sure to proofread your submission, since your last few sentences point to offshoring/outsourcing being positive and negative — how can both of these be true?
1. “outsourcing is wise because it makes sense to pay someone in the United States to do a task that could be done by someone else for a similar wage overseas.”

2. “Everyone benefits from the habit: Businesses receive more products faster, tasks are completed, and customers receive better customer service and probably pay less for their purchases.”

[Aboubacar Traore]

Nowadays, outsourcing is the way for most companies to delegate some functions or tasks in order to generate profit. On top of that, outsourcing benefits consumers, and developed countries, influences international stability, encourages competition, and increases productivity and efficiency.

Consumer: The importance of outsourcing for companies is to reduce the cost of their operations and labor. As a result, they would be conscientiously forced to lower the price of their goods or services, which is beneficial for consumers.

Developing countries: I’m going to focus on some ways to say that outsourcing can develop countries. When companies outsource their operations, that creates jobs, which is important for the foreign country in terms of economics. Moreover, outsourcers also invest, and work with local enterprises financially, which could fortify a local economy. Finally, they send a bulk of technology and skills to the local workplace.

International stability: Outsourcing increases the good relationship between two countries and their businesses. Internationally, when two countries interest each other economically, they could quickly end their conflict to avoid economic disruption. On the other hand, once countries share one economic goal, they will have respect for each other in order to preserve their profit.

Competition: Once companies have decided to extend their goods or services into foreign countries, they will face strong competition with the local firms in the market. That competition is good because it would push outsourcers to improve their offers, reduce their cost, and provide good quality to gain clients’ credibility.

Productivity and efficiency: Outsourcing enhances productivity because of the lower price of labor cost. Another way to prove that outsourcing enhances productivity is the lower quality of local goods or services, which enables them to increase their productivity. On top of that, efficiency is one of the qualities of outsourcing to obtain clients’ attention, so outsourcing does enhance efficiency.

[Amr Taha]

Outsourcing can create competition as it allows companies to use cheaper resources from other countries, which can lower costs and improve their standing against other businesses. But, if all companies use outsourcing, it becomes less special and might lead to low wages and poor conditions.

Also, relying too much on outsourcing can lead to fewer choices if foreign suppliers become too powerful. This happened to Boeing when they used inexperienced suppliers, making their work more difficult.

So, while outsourcing can help the competition, it needs to be done carefully. When managed well, it can provide long-lasting benefits.

URL: https://www.latimes.com/business/la-xpm-2011-feb-15-la-fi-hiltzik-20110215-story.html 

:https://www.youtube.com/watch?v=V7fsEIp2r_8

:https://www.investopedia.com/terms/o/outsourcing.asp

[Rotem]

Hi Amr,

In fact, outsourcing can give businesses access to cheaper resources and specialized knowledge from other countries. However, there is a risk of relying too much on outsourcing. When many companies use outsourcing, they may lose their uniqueness and cause pay and working conditions to worsen.

[Briana Lima]

Hi Amr,

I agree. Outsourcing, as we watched in the video, makes the foreign countries more powerful. Because the demand for their low-wage services is so high, they can raise their asking price and also be selective with which companies they decide to work with.

[Jacob]

Hi, I read parts of the LA Times article you post, and it clearly depicts your argument and I completely agree.

[Mahir Khan]

Hi Amar,

I agree with the point that outsourcing can lower costs of products and help businesses gain more profit by reducing cost of labor, since the cost of labor in foreign countries may be significantly less than in the home country.

[Rasheeda Noel]

I definitely agree with your perspective on outsourcing helping with costs. I generally like to think about Apple and other bigger companies that love to get their products from China. At times it can be difficult to find labor for great quality and an affordable prices. Sadly, if the item being produced incorrectly then it can only decrease  Sadly, if the item being produced incorrectly

[Brielle Buckler]

I love your point about an upper limit with outsourcing — but I think you mean offshoring, right?

[Jacob]

When it comes to outsourcing, business can really be more successful and bring more profit, but it goes to say it does bring it’s pros and cons into the discussion. from a broader perspective, many businesses will result in failing in using such a method that can hurt a company’s future.

Outsourcing: With outsourcing becoming a problematic issue for Americans, many U.S. companies had left their innovation to countries that made huge profits. For example, Walmart which is generally a U.S. corporation are now reshoring to bring jobs to the United States heartland where most Americans are trying to find jobs.

Benefits: With the U.S. having it’s own problem whether it’s climate change and politics, the Unites States would benefit well with bringing back it’s companies from it’s foreign competitors and invest in our economy where we are failing to fix our infrastructure and bring awareness to our people who are suffering.

International Stability: Whereas the U.S. needs some reshoring, it goes to show that some countries need help too. With poor instability in citizen towns, the U.S. corporations provide much needed jobs that people can benefit from and increase their well being.

In conclusion, both reshoring and Outsourcing are critical for improving jobs, peoples living standards, contributes to economic growth and development which results in a thriving economy.

Here is a link to Walmart supplier reshoring.

manufacturingdigital.com/lean-manufacturing/reshoring-initiative-and-walmart-launch-effort-help-suppliers-reshore

 

[Allan Pinedo]

Hi Jacob

I agree that outsourcing and reshoring are both necessary for economic expansion, job opportunities, and global stability. A thriving economy that is beneficial to all parties involved can result from balancing such approaches.

[Mahir Khan]

I agree with the point you made about outsourcing and reshoring that both approaches have its pros and cons. Outsourcing can definitely create job opportunities for the foreign country, but too much reliance on the outsourcing partner can make the company vulnerable to the demands of the outsourcing partner, and it also lets the outsourcing partner have unwanted access to the company’s methods of production and much more.

[Toi Chotoosingh]

Outsourcing is good because:

The Consumer: Outsourcing is beneficial to the consumer because it does lower the cost of a product. More so, outsourcing allows for consumers to find the best product for the right price from a different company that might have a lower cost on the product than a local company. In the video, while the consumer was upset at first over an Indian company selling an American Eagle statue, ultimately he went with it because they were seeling it at a cheaper price than the American company

Effciency & Productivity: Outsourcing enhances effciency and productivity because it costs less to have highly skilled workers in another country produce their products. For example, Foxcom in China has been producing Apple’s products at a mass production rate whch allows Apple to produce their products quickly and effeciently

Competition: Outsourcing does encourage competition because companies will refine their products with good resources and build their reputation through giving back to communities, properly benefiting their employees, and more as a way to sell themselves to consumers

International Stability: Outsourcing does develop a good relationship between two countries. With mutual respect and coorperation both countries economies would prosper

Cites:

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Outsourcing is when someone or a business obtains goods or a service from a foreign supplier. Outsourcing encourages competition within developing or foreign countries. It also encourages competition from the country the business or buyer is from. When we look at every country, they all have a reputation and are known for something. The United States is looked at as the land of opportunities, China is looked at as one of the world’s biggest manufacturers along with India. Ghana is looked at as the Gold Coast or the country where most Shea Butter comes from. Developing countries love to show their resources to call for business. When a country is developing relationships with foreigners they’re hoping for economic expansion and to gain more relationships with foreign countries to help their country develop even more.

 

Let’s take a look at Ghana, Nigeria, and Northern Uganda. They are the main source for Shea Butter and they’re all African countries. Countries compete to see who can make the best quality Shea Butter, the most and the fastest. Quality is the most important when it comes to outsourcing. The competition is great for the countries but it has its cons. The main reason for outsourcing is due to quality and businesses trying to save as much money as possible. It’s great because they are having business but they may not be paid appropriately for their work and resources. But as time goes on and the business relationship grows employees can demand a wage increase for their work and resources and expect to receive an increase.

 

Isabella. (2022, May 13). Shea butter origins: Where does shea butter come from?. Better Shea Butter.

<span style=”font-weight: 400;”>https://bettersheabutter.com/where-does-shea-butter-come-from/#:~:text=Out%20of%20these%20countries%2C%20the,from%20East%20Africa%20(Uganda)</span&gt;

 

Jumpfactor. (2023, May 23). How outsourcing can become a competitive advantage for you RBC Medical Innovations.

https://rbccorp.com/how-outsourcing-can-become-a-competitive-advantage-today/

• This reply was modified 1 year, 8 months ago by null.

[Rasheeda Noel]

As a business owner, I am a primary source when it comes to outsourcing my items and working with others for the same purposes. Based on my experience depending on where I outsourced from the prices and quality changed. In the beginning of my cosmetic business, I was able to find many US based companies that provided the exact items I was looking for. I also wanted to learn how to make my own cosmetics in order to save on production costs. While I outsourced my lipgloss gel and some other items, I monitored my previous business tendencies. With that, I learned that outsourcing can enhance effeciency and productivity depending on the business. In result of me having a cosmetic business, I believe that productivity is impacted by making products from scratch as a small business owner. However, when it comes to larger businesses they will have a larger amount of resources. If I were desired the ability to outsource my lipgloss products I could be able to spend more time focusing on other aspects of the business. According to, Stephanie Overby from CIO outsourcing can “lower cost”, and can ”increased flexibility to meet changing business and commercial conditions”.  Based off of general feedback from other business professionals, they also agree with these facts as they have similar experiences.

https://www.cio.com/article/272355/outsourcing-outsourcing-definition-and-solutions.html

[Nanyamka Mead]

Does outsourcing benefit developing countries? Why or why not?

Out sourcing can create new employment opportunities in developing countries. Such as customer service,information technology, and manufacturing. Outsourcing can also contribute to economic growth by attracting foreign investment and increasing export revenue, and boosting the country’s Gross Domestic product. outsourcing often requires specialized skills, which can lead to development of a skilled workforce in the host country. This can have positive long term effects on the country’s labor force.

[Nanyamka Mead]

Hey Rasheeda Noel,

I agree that making your own product as a smaller business is more better and cost efficient.

[Author]

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