Term Paper: Opponents’ Argument on Outsourcing

By | November 26, 2011

Sample Term Paper

Opponents argue that the obvious loss of jobs to foreign markets shows the negative aspects of outsourcing. Studies have shown that outsourcing by U.S. firms rose from 12 percent in the year 2000 to 28 percent by 2003. The study further states that by 2015 3.4 million American jobs will have relocated overseas (Halvey, 2003). This gives a rate of about 257,000 job losses a year.

Another study conducted between 1997 and 2003 showed that the nineteen groups in the manufacturing industry registered a total job loss of 3.3 million. Furthermore the nineteen groups showed declines of between 4% and 56%. The study showed that as a whole employment in the manufacturing sector declined by 19% during the same period (Burke, 2003). It is these declining numbers that the critics are citing as the drawbacks of offshore outsourcing.

Nobel Prize winner for economics Samuelson (2009), states that the U.S. will lose its competitive advantage to the emerging economies as a result of outsourcing. He maintains that the job losses will be permanent.

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