Question

Identify and discuss briefly what you think are the major trade-offs that firms face as they think about offshoring and reshoring. When substantial layoffs are involved, what are firms’ responsibilities to their employees and their communities?

Answer 1

After reading about the job loss, and outsourcing i still have convictions about it I understand how companies find the need to move a company to an area where they can be most profitable. bt closing business have created job loss and this is the bottom line for the people in the US. firm that descide to outsource their company overseas have looked at the bottom line and saving their company by using area in which the labor is cheaper , or products and labor are cheaper making it cheaper to produce products, or cheaper to use call centers and many other factors, However some companies that decide to outsource actually end up coming back because communities they seek to do business with the company have difficulties and the company would end up better benefitting in returning the company. however when these plants close the companies are responsible for many people becoming dislocated and this consideration should be evaluated before they do it, they should see what their closing will do to the community and try and come up with solution that will help in the situation. but in reality a company has no responsibility to the employees or community but it would be better for both if the company would evaluate other ways before making the decision.