Question

In The Corporation, a CEO claims that outsourcing jobs to low-wage workers is ultimately beneficial to those workers. Do you agree or disagree with the CEO’s claim that outsourcing is ultimately helpful for people living in poorer countries?

Answer 1

Outsourcing - it is an agreement in which one company hires another company to perform services and create goods that could be done internally, and sometimes involves transferring employees and assets from one firm to another.

Yes, I agree with the CEO's claim that outsourcing is ultimately helpful for people living in poor countries because outsourcing has it's benefits that are -:

(1) Outsourcing can increase company profits -:

Companies generally decide to outsource to save themselves to scale their business.

(2) Outsourcing can increase economic efficiency -:

It can increase overall efficiency in the economy by distributing tasks to people who have the appropriate skill level to perform the tasks and letting highly skilled workers be more productive.

(3) Outsorucing can distribute jobs from developed countries to developing countries -:

It can lead to higher wages and more job opprtunities to the people in the developing countries to which U.S firms outsource.

(4) Outsourcing can strengthen international ties -:

It helps to strengthens the relationship between companies in two or more countries or between the governments of those countries.