kir reply

Reply to the post below in a min of 150 words

I’m a firm believer in capitalism and to an extent a free market economy but, I am also of the belief that offshoring needs to be regulated at some point. In the text it states for every dollar spent by US firms’ offshoring in India, the US firms save 58 cents Overall, US$1.46 of new wealth is created, of which the US economy captures US$1.13, through cost savings and increased exports to India, which buys Made-in-USA equipment, software, and services. India captures the other 33 cents through profits, wages, and taxes (Peng, 2017). While this may be true it exponentially increases the US unemployment rate. Furthermore, in one hand we are stimulating the economy and on the other hand are deflating the economy. If Americans are not at work then are not contributing to the US economy. If every single company decided to outsource its Human Resources Department, human resources would no longer be a profession in the United States. Companies do you have to take advantage of emerging markets and cut overhead in order to stay relevant within the market both domestically and globally but, in my opinion it should be moderately regulated. I believe it should be percentage regulated based off of how many employees you have and the revenue stream globally. It’s currently estimated that 14 million outsource jobs are being paid for by US companies. Putting 14 million Americans back to work sounds like an economic stimulus package to me.

Nearshoring:

Similar to my comment above, near shoring also needs to be regulated to a point. Although the difference between nearshore and an offshore outsourcing in my opinion is that the revenue being generated is more likely to end up in the US economy. I also believe that nearshoring doesn’t take as many jobs away from American people due to the fact that the proximity will likely cause people to move there from the United States while still maintaining a mortgage, family, and buy goods in the United States.