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 Should Free Trade be A Goal (2)

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Should Free Trade be A Goal

This is for an economics online class, feel free to write your opinions and debate mine :)
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1 point

1) Why are some people against outsourcing? Why do others support it?

2) Choose a developing nation and a developed nation. What industries or companies may have an interest in outsourcing to these nations?

3) What barriers to trade would prevent an American company outsourcing to one of those countries?

4) Do you think outsourcing would promote or hinder a healthy American economy? Explain.

1) Many are against outsourcing because it can create unemployment in countries when jobs are created in others. When these countries outsource us, unemployment rates will rise higher and higher. On the contrary, many people are for outsourcing because many larger corporations make good profit off of this. When unemployment rates spike, companies no longer have to pay workers as much, increasing their own company profit.

2) One developing nation is Argentina, and a developed one is Canada. An industry or company that may have an interest in outsourcing Canada is customer service and IT services. For Argentina, manufacturing companies can, due to cheap labor.

3) A barrier to trade that could prevent an American company from outsourcing one of these countries could be Canada's emergence as with a good proximity to the united states, and their political stability.

4) I think outsourcing could both hinder and promote a healthy economy. It depends on the perspective you look at it from, because while many companies may profit off of it, helping the economy, they come about the money in ways that can do a lot of harm effecting stock, trade, and employment.

1 point

Permit me to state that your interpretation of outsourcing is not altogether accurate.

Outsourcing is normally referred to when a company outsources a particular function or functions in which it seldom engages and finds it more economical to call on dedicated consultants in whatever particular field their services may be required.

These can include, legal services, recruiting staff with specialized skills or any sphere of business which the main contracting company may decide to engage a sub-contractor to fulfill its very rarely needed requirements.