Essay about Where Has My Job Gone - 2366 Words

Where Has My Job Gone? With the implementation of minimum wage and rising production costs in the United States, many companies have found themselves looking for a way to save money on production. Clothing manufacturers such as Nike have used labor forces in other countries, mainly in Asia to produce their products. These countries can offer similar quality labor for a cheaper cost on wages. The lower or non existent minimum wage laws in foreign countries allow companies like Nike to cut production costs drastically, while still being able to produce quality products. Similar trends are starting to creep into software companies. They are finding a workforce able to do similar work as the American workers, but for less pay.†¦show more content†¦Similar companies can outsource less important software, but reassign current personnel to projects that would require â€Å"on site† work. Also, companies that outsource will gain access to capabilities and expertise of the countries they outsource to. The people of India grow up in a different society and have a different outlook on life. This would give them a different approach to problems in software, which can make certain problems seem simple. Furthermore, the competencies developed over in India can also be utilized by companies. Based on an economic model from Adam Smith, Countries have different endowments. Differing climates give advantages to the production of different crops. Differing histories and inclinations result in different advantages in finance, skills and manufacturing. If each country specializes in areas where its advantages are greatest or disadvantages are least, the gains from trade will make each country better off than it would be if it remained self-sufficient. [3] Another benefit to a company that outsource is the ability for them to scale up for a project without increasing the number of permanent staff. The capability for the company to send work to India allows them to use them for specific tasks. Once that task is complete, the job is over. They will not have all the extra workers on staff. The company is essentially hiring aShow MoreRelatedMy Incredible Mother Essay871 Words   |  4 PagesThroughout my Moms life she proved over and over again that she could combat adversity and make rose gardens out of pot holes. My Mom had my sister and I both by the time she was eighteen years old. Even with two kids and a job she was able to stay in school and get her high school diploma. Several years later, with a family and fulltime job she was still able to get her bachelors degree. 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