After reading chapter 6 and reviewing some of the other topics we have covered,
ID: 389249 • Letter: A
Question
After reading chapter 6 and reviewing some of the other topics we have covered, thus far, answer the following question. Be sure to back-up your position with facts, additional research, outside sources, and, your personal opinions and experiences. If you disagree with someone else' position, explain, to them, your reasons for disagreeing and why your position makes more sense Question: One study that focused on the impact of China trade on the U.S. textile industry noted that 19 U.S. textile factories were closed and 26,000 jobs lost in 2004 and 2005. If these factories had not closed, it would have cost U.S. consumers $6 billion more in higher textile prices. Assuming these facts are true, offer an argument for or against off-shoring U.S. jobs.
Explanation / Answer
Below are the points for or againts off-shoring US jobs -
For
Offshoring involves transfer of the work to other countries either setting up own units or contracting to other firms to take advantage of low labor and land costs, high availability of resources etc. thus reducing the overall cost of the product and increase in profits.
The strategy also provides the consumers with a wide range of products that the firms in other countries would offer with low prices.
Against
Offshoring results in increased competition to the domestic firms and products resulting in huge losses to the firms and shutting them. It also results in loss of jobs in the domestic market.
Offshoring also makes it difficult to quality check and control the products that come from offshoring countries.