Cheap Labor and Outsourcing Research Paper Example | Topics and Well Written Essays - 3000 words

Cheap Labor and Outsourcing - Research Paper Exampley workers with robots. (Musil, 2012) But for the sordid application available in the thickly populated countries like China, India and Indonesia there is no other vindication for shifting or creating new facilities in these countries by the American companies. In fact, the companies do make some(prenominal) compromises in other areas to exploit the cheap labor. Do we have plans to shift the production facilities back to America, if labor could be replaced with robots? The indiscriminate outsourcing drive is neither in the interest of the host countries nor in the interest of the regular army in the coherent run. This paper seeks to analyze the causes for outsourcing either within the country or to foreign countries, its blow on the business and economy of the USA and the host countries. It is not the question of what is good to American economy. The slew has several dimensions. Is corporate social responsibility of the multi national companies engaged in outsourcing spree limited to exclusively the USA? Are they not responsible for human rights issues involved in the operations of the suppliers? Disturbance of the actual equilibrium in the employment market either locally or internationally creates serious imbalances in the economic system in the long run and result into a situation of catching the rear of a tiger, meaning neither you can afford to leave the tail nor holding it for longOutsourcing is generally recognized as a strategy for producing cost saving, however, by simply following a traditional cost-focused approach, companies may be missing opportunities to gain further competitive advantage (Deloitte, 2008). The following points affect to be carefully considered in respect of cheap labor in view of its impact in general on the economy.3. The market is saturated locally and establishment of production facilities in a trinity country could meet the local demand in such country and this uni t could act as a hub for export of such products to other countries.In