Dr. Alejandro Diaz Bautista Conference FDI Mexico United States September 2009Economist
“Foreign Direct Investment (FDI) and Economic Growth. The Case of Mexico and the United States".
Dr. Alejandro Díaz-Bautista
Investigador Nacional y Miembro del Sistema Nacional de Investigadores, CONACYT, Nivel II.
adiazbau@hotmail.com
http://www.linkedin.com/pub/alejandro-diaz-bautista/6/619/691
Profesor-Investigador de Economía,
Departamento de Estudios Económicos,
El Colegio de la Frontera Norte.
Preparado para la 1er. Seminario internacional Evaluación del efecto de la Inversión Extranjera Directa (IED) en las economías en desarrollo. El evento se realizara en la Casa COLEF Ciudad de México, con dirección en la Calle Francisco Sosa No. 254, Col. Barrio de Santa Catarina en Coyoacán, México D.F. el 18 de septiembre de 2009.
Trade deficit tax losses violates constitutional law. This presentation has sound and provide and indepth overview of the trade deficit. It provides an understanding of equal trade as a corrective action. It also invites the reader to sign a petition at the website www.CitizensForEqualTrade.org.
Dr. Alejandro Diaz Bautista Conference FDI Mexico United States September 2009Economist
“Foreign Direct Investment (FDI) and Economic Growth. The Case of Mexico and the United States".
Dr. Alejandro Díaz-Bautista
Investigador Nacional y Miembro del Sistema Nacional de Investigadores, CONACYT, Nivel II.
adiazbau@hotmail.com
http://www.linkedin.com/pub/alejandro-diaz-bautista/6/619/691
Profesor-Investigador de Economía,
Departamento de Estudios Económicos,
El Colegio de la Frontera Norte.
Preparado para la 1er. Seminario internacional Evaluación del efecto de la Inversión Extranjera Directa (IED) en las economías en desarrollo. El evento se realizara en la Casa COLEF Ciudad de México, con dirección en la Calle Francisco Sosa No. 254, Col. Barrio de Santa Catarina en Coyoacán, México D.F. el 18 de septiembre de 2009.
Trade deficit tax losses violates constitutional law. This presentation has sound and provide and indepth overview of the trade deficit. It provides an understanding of equal trade as a corrective action. It also invites the reader to sign a petition at the website www.CitizensForEqualTrade.org.
Business guide for US. 2014 Update. Doing business in United States? Want to export your products in US? whatever your purpose is, will find helpful info which will help your business objectives.
The range of exposures facing directors and officers (D&Os) – as well as the resultant claims scenarios – have increased significantly in recent years.
With corporate management under the spotlight like never before, Allianz Global Corporate & Specialty (AGCS) experts provide both a reflection of the current state of the D&O insurance market and also point the lens forward to five mega trends which lie ahead, impacting risk managers, their D&Os and their broker partners.
5 most expensive mistakes companies make when trying to grow their company.ikealu7
5 most expensive mistakes companies make when trying to grow their company. Includes relavant information on the economy, business, and consulting in the Project Management Space.
Business guide for US. 2014 Update. Doing business in United States? Want to export your products in US? whatever your purpose is, will find helpful info which will help your business objectives.
The range of exposures facing directors and officers (D&Os) – as well as the resultant claims scenarios – have increased significantly in recent years.
With corporate management under the spotlight like never before, Allianz Global Corporate & Specialty (AGCS) experts provide both a reflection of the current state of the D&O insurance market and also point the lens forward to five mega trends which lie ahead, impacting risk managers, their D&Os and their broker partners.
5 most expensive mistakes companies make when trying to grow their company.ikealu7
5 most expensive mistakes companies make when trying to grow their company. Includes relavant information on the economy, business, and consulting in the Project Management Space.
A detailed study to evaluate the financial impact of demanding made in usa pr...Charm Rammandala
The purpose of this article is to investigate the notion that increasingly companies trying to promote products made in USA over imported products. Due to the increased influence by politicians and perception of segment of population, companies are looking in to bringing certain manufacturing plants back to USA. This study will focus on understanding motivations behind it and how feasible and practical the notion is and whether it makes any financial sense
45The Security Survey An OverviewA security survey is a.docxalinainglis
45
The Security Survey: An Overview
A security survey is a critical, on-site examination…to ascertain the present security
status, identify deficiencies or excesses, determine the protection needed, and
make recommendations to improve the overall security of the operation.
—Raymond M. Momboisse, Industrial Security for Strikes, Riots and Disasters,
Charles C. Thomas Publishers, 1977
The goal of risk management—to manage risk effectively at the least possible cost—cannot
be achieved without eliminating or reducing, through a total management commitment,
the incidents that lead to losses.1 Before any risk can be eliminated or reduced, it must first
be identified. One proven method of accomplishing this task is the security survey. Charles
A. Sennewald, author and security consultant, has defined the security survey as follows:
“The primary vehicle used in a security assessment is the survey. The survey is the process
whereby one gathers data that reflects the who, what, how, where, when, and why of the
client’s existing operation. The survey is the fact-finding process.”2
Why Are Security Surveys Needed?
There are reports published by the Association of Certified Fraud Examiners (ACFE)
estimating that the cost of fraud and financial abuse to American business was in excess
of $994 billion per year in 2008 and rising. This figure is believed by most authorities to be
very conservative. The sad fact is that no one organization is capable of collecting all the
data available concerning fraud. As an example, in America we have an alarming trend
in Medicare fraud, costing taxpayers untold millions of dollars. The biggest problem, and
the one seen most often by fraud investigators, is that most corporate managers do not
know if they have theft problems. Worse, many do not even want to know that they have
a problem with employee theft! Some managers seem to prefer to keep things as they are
and to regard any suggestion of the need for increased security as a direct or indirect crit-
icism of their ability to manage their operations. We hope that this attitude has changed
for the better as a result of the downturn in the global economy. In times of economic
difficulties anything that affects the bottom line (profits) is not tolerated. Nevertheless,
where fraud exists, most business fraud surveys calculate losses at about 6 percent of
annual revenue. Some surveys we have seen reported have concluded that losses attrib-
utable to employee theft (internal theft) equal or exceeded profits! This is especially
7
1 The field of risk management encompasses much more than security and safety. These two subjects, along
with insurance, however, are the cornerstones of most effective risk management programs.
2 Sennewald, C. A., 2004. CPP, Security Consulting, third ed. Butterworth-Heinemann, Elsevier, Boston, MA.
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true for chain-store operations, .
2015 cost of data breach study global analysisxband
2015 Cost of Data Breach Study:
Global Analysis
By: Ponemon Institute
Benchmark research sponsored by IBM
Independently conducted by Ponemon Institute LLC
May 2015
Start-up losses are mounting and innovation is slowing, but venture capitalists, entrepreneurs, consultants, university researchers, and business schools are hyping new technologies more than ever before. This hype is facilitated by changes in online media, including the rise of social media. This paper describes how the professional incentives of experts and the changes in online media have increased hype and how this hype makes it harder for policy makers, managers, scientists, engineers, professors, and students to understand new technologies and make good decisions. We need less hype and more level-headed economic analysis and this paper describes how this economic analysis can be done. Here is a link to the journal, Issues in Science & Technology: www.issues.org
Identity theft remains a pernicious threat to consumers. While the federal government and private sector have done much to address this issue, it is important that legislators and regulators remain vigilant to protect consumers from this ever-evolving fraud.
Discussion 1 MD International is a medical supply company tha.docxduketjoy27252
Discussion 1
MD International is a medical supply company that has exported medical equipment, initially to Latin America. They acted as an intermediary for other businesses in doing so. This made it more cost efficient for other businesses due to the broad spectrum of products MD was involved with. The company owner chose Latin America since he was already familiar with business in the area. At the time trade barriers were coming down, which made the area ripe for new entry. The local governments were also expanding in the area of health care (Hill, 2012).
The company made South Florida home base. The company worked with specialists in Latin America in the fields of medical supplies they were trying to sell. Along with selling the products, they were able to offer training and support for the products they sold (Hill, 2012).
They relied on export assistance programs established by the United States. One of the biggest things they counted on was the Export Import Bank, also known as Ex-Im Bank. This bank provided financial assistance and insurance to help facilitate exports, imports and exchanges between the United States and foreign countries (Hill, 2012).
MD International started out as a small company. With that understanding, although they became successful, they could not have done so without the help of these programs. They could not afford to finance business deals with other companies and foreign countries on their own. They also could not afford to float loans and continue to produce. In essence, without the assistance of U.S. government assistance, MD International would not have been able to accomplish their goals of going into the global market.
According to James Merritt, owner of MD International, “ Without Ex-Im’s assistance, our company would have lost important sales, and individuals throughout Latin America would have gone without access to modern medical technology” (Merritt, 2006, p.1).
This to me is definitely good use of taxpayers money. Businesses that are able to export goods and services are in essence bringing money back into the United States through their sales. Even small business can grow into large corporations given the right circumstances. Unfortunately this is not always easy to accomplish without the capital to do it.
Getting this capital is not easy due to the risks involved in dealing with other countries. If a foreign country defaults on a loan, the money is difficult to recover. The laws governing them are different and the currency is not always the same or equal. Most conventional banks refuse to become involved in these deals (Merritt, 2006).
For those companies that have a product that could bring money back to the United States, the Ex-Im Bank is a lifesaver. “American companies of all sizes would lose countless billions of dollars in export sales—and the high-paying expor.
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Investigate the company’s earnings in its latest quarter. Explain how currency fluctuations across the globe have affected earnings. Search each of the latest financial reports to find such information. Make sure you research the information from the perspective of currency fluctuations on revenue, earnings, and global market share.
Yum! Brands, Inc. is a major franchisor and licensor of fast-food restaurants with more than 49,000 units in over 145 countries. They include KFC, Pizza Hut, and Taco Bell brands. On April 28, 2021, Yum! Brands reported a “strong recovery driven by record digital system sales of over $5 billion with accelerated off-premise growth” (Yum! Press Release, 2021, para. 1). The report continues, “worldwide system sales excluding foreign currency translation grew 11%, with 9% same-store sales and 1% unit growth” (para. 1). Since the company acquired two technology-focused companies, they expect to increase exposure of their brands through digital and marketing campaigns. The report is extensive since three major brands are represented through Yum! Brands, Inc. KFC and Taco Bell increased 11%, while Pizza Hut grew at 7%.
“Foreign currency translation favorably impacted divisional operating profit by $16 million” (Yum! Press Release, 2021, para. 4). Since Yum! Brands are present in 145 countries, currency fluctuations across the globe make significant differences in profitability. Clearly, the COVID-19 pandemic leaves the brand to uncertainties surrounding the duration of restaurant operations. Revenue in the Q1 of 2021 were 1.435 billion. While CFRA provides a favorable outlook for Yum! Brands in the coming year, one caveat pertaining to our discussion topic for this week has to do with “a steep and/or protracted global economic recession or sharp decline in consumer spending; and foreign currency headwinds” (CFRA, 2021, p. 1). Most of this has to do with the COVID-19 pandemic.
An outcome from the pandemic is increased efforts for cost reduction measures, including efficiency improvements. Related to exchange rate, Yum! has made a major push in China since 2016, which has a population of 1.3 billion with a rapidly growing economy. “The company plans to increase the number of units in China at a double-digit rate with same-store sales growth of at least 5%” (CFRA, 2021, p. 2). The opportunity in China could present a great deal of growth, particularly with China’s relatively stable currency.
===========================
John Deere was officially incorporated in Moline Ill. In 1868 as Deere and Company (Columbia Electronic Encyclopedia, 2021). The company was started by John Deere that was born in 1804 and started selling plows in 1837, before moving to Moline Ill. (Columbia Electronic Encyclopedia, 2021). In the first quarter of 2021 John Deere grossed nearly 12 billion compared to just ...
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Implicitly or explicitly all competing businesses employ a strategy to select a mix
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Ginger rey essay example - abandoning america - research paper
1. Abandoning America: The Outsourcing Infection
Ginger Rey
Professor Flynn
English 135
21 February 2005
2. Rey 2
Ginger Rey
Professor Flynn
English 135
21 February 2005
Abandoning America: The Outsourcing Infection
John Doe loses his job. Jane Doe is a victim of identity theft. The United States economy
is in the red. The common denominator of all is the upshot of outsourcing in America today. The
festering of this infectious outsourcing is increasing job loss for Americans, it is increasing
security threats for citizens, and it is increasing the national trade deficit in the World Market.
Joblessness due to outsourcing is much more widespread than projected. Companies that
outsource are not replenishing job sources within the United States. Scores of companies are
outsourcing to foreign countries promoting more import buying than selling of exports lending to
the deficit problem. Personal data that is processed in foreign lands initiates potential theft and
terrorist risk. Policies need to be set in motion and imposed that will protect American jobs,
prevent financial and terrorist related activities posed by identity theft, and restrict the
exploitations of the Free Trade Agreement.
Outsourcing is a word that tastes gritty to many Americans. The mere mention of this
word draws a distinguishing line between employers and employees and between large and small
businesses. A good look at outsourcing can determine whether the way outsourcing is conducted
is beneficial for Americans—or just a bad tasting residue left from a spoiled economy.
Defined by the dictionary; outsourcing is the “practice of subcontracting manufacturing
work to outside and especially foreign or nonunion companies” (Merriam-Webster Online).
Outsourcing was implemented to help redistribute employment for service workers, hold down
3. Rey 3
consumer prices, and make businesses in America more viable. Outsourcing is not something
new and has been practiced by corporate America for decades. Concerning current events of
outsourcing; this definition barely begins to elucidate the magnitude of repercussions this
“disease-like” contagion is spreading in the business arena today.
In the 1990s outsourcing became more concentrated when America faced a recession.
Corporations began restructuring how they operated and economic growth returned near the end
of the 1990s, helping American companies regain their competitive strength as they cut costs by
widening the sectors of outsourcing (Corbett, qtd. in Amazon). Moving into 2000 has shown that
the previous good results produced by outsourcing have now ultimately backfired; the evidence
that outsourcing is flinging the economy into a recession—as ordinary people flounder to find or
keep a job and pay bills—is emerging. Forrester Research notes that in 2005, 830,000 jobs will
be given to foreign workers. In addition, two economists from University of California
investigated employment at risk finding stunning consequences concerning outsourcing; results
show 14 million Americans may lose their jobs if outsourcing is continued (“Outsourcing: A
Brief Timeline”). These statistics indicate poor job conditions for Americans directly linked to
outsourcing. That is a lot of John Doe job loss.
One glowering security issue of outsourcing is identity theft. Typically, many call-center
jobs that are now outsourced to foreign countries have access to personal information such as
credit cards, social security numbers, bank numbers, addresses, and phone numbers. The New
York Times best captures the problem.
A leading bank regulator, the Federal Deposit Insurance Corporation, warned in
June [2004] that increased corporate outsourcing of call-center tasks and other
jobs overseas had heightened the risk of identity theft.…During those 12 months,
4. Rey 4
the report said, businesses and financial institutions suffered about $48 billion in
losses because of identity theft, and victimized consumers paid more than $5
billion in out-of-pocket expenses to regain their financial identities (“Can Identity
Theft Epidemic Be Stopped?”).
These statistics indicate expensive security problems related to outsourcing. That is a lot of Jane
Doe victims of identity theft.
Regarding trade, outsourcing can be good for economies; it utilizes another nation’s
resources, but if the trading is disproportionate, not enough exports or too many imports, that
country will suffer economically. For the past twenty-five years America has been buying more
from other countries than it has been selling. This has placed a strain on America’s economy and
pushed her into a trade deficit. Outsourcing has further compounded this problem. As the various
sectors of outsourcing increasingly move their businesses into other countries, fewer products are
being made in America to sell to other countries, reducing the amount of exports that help
maintain a trade surplus. Cheap labor in foreign countries generates products that can be
purchased by consumers in America at reduced prices, and then these products become an
overabundance of imports made by foreign workers and purchased from other countries. This
breach between imports and exports has caused the United States to borrow from other countries
and sell them more American assets to finance this underperformance. The foreign debt in 2001
reached 22% of Gross Domestic Product (GDP) with a trajectory of 40% GDP within five years
according to Jeff Faux, Political Economist and Founder of Economic Policy Institute (EPI).
Faux further compares the rate of Argentina at 50% GDP when their economy collapsed because
of their external debt. Faux goes on to say that the handwriting is on the wall and the United
States cannot keep expecting to buy more products than it sells without catastrophic results.
5. Rey 5
Dan Griswold, Director of Center for Trade Policy Studies at Cato Institute, disputes that
the trade disparity means our economic growth is slower, that our manufacturing output has
fallen, or that unemployment is down (“Bad News on the Trade Deficit Often Means Good News
on the Economy”). He “tries” to equate past times when the GDP, manufacturing, and
employment grew during times the deficit was shrinking. This argument is difficult to support
when he blatantly includes statistics in a separate article he wrote from the U.S. Bureau of the
Census report on the true situation. “For the calendar year [2002], imports of goods into the
United States exceeded exports by $484.4 billion. When that figure is combined with an overall
surplus in services of $49.1 billion, the 2002 deficit in goods and services was $435.2 billion, the
largest in U.S. history” (“The U.S. Trade Deficit and Jobs: The Real Story”).
The rate our trade deficit is escalating with the inclusion of outsourcing is an indication
something is terribly wrong. According to Trade Economist Josh Bivens (also from EPI) the debt
reached $665 billion at the end of 2004. That is a lot of increased foreign debt.
It is understandable that conveniences do contribute to the desire for companies to want
to outsource. Businesses are interested in outsourcing because it provides a reduction in cost,
improvement in efficiency, and expertise sources (“Outsourcing”). Although each offer
intelligent reasons for this practice, the effect still causes distress on the working American and
on the economic standing of the United States on a global scale.
Reflections on the following give insight into the need for policy reform, policy
enforcement, and new policies that protect both the residents and their motherland from the
devastating infection caused by outsourcing.
6. Rey 6
1). A business perspective will say the reduction in cost for corporations simply cannot
be argued. The “average wages for employees [in India] are 20-35% of that of their American
counterpart” (“Brains Abroad – India Job Outsourcing”). American workers cannot compete
with the meager salary an Indian worker receives of $500 dollars a year (“Outsourcing: A Brief
Timeline”). Auto insurance alone typically costs triple that in America per year and residents
must meet the cost of living. The sad facts are that the more outsourcing is continued, the more
workers are forced into taking lower wages as they are replaced by foreign workers or their
institutions ship overseas.
Forbes magazine repudiates that outsourcing is hurting American jobs and that jobs are
created from outsourcing. “Forbes touts a recent study commissioned by the Information
Technology Association of America that found that the off-shoring of IT services and software
led to the creation of 90,000 U.S. jobs last year.” However, the same Newsmax.com article of
April 14, 2004, listed RadioShack as adding only 300 jobs in Texas and Juniper Networks
adding only 45 jobs in California for the year while Veritas was to hire 175 workers (Limbacher
and et al.). These figures indicate very “little” new job growth from outsourcing.
After the North American Free Trade Agreement (NAFTA) took effect on January 1,
1994 trade deficits exploded from $30 billion deficits in 1993 to $85 billion in 2002, increasing
the deficit 281%. The result was job loss in all 50 states and the District of Columbia. Jobs
gained by NAFTA exports amounted to 794,174 and jobs destroyed by NAFTA imports
amounted to 1,673,453—twice as many jobs were lost (Scott). None of this is “very efficient” for
the American worker. These job conditions exemplify the trade inequality in full force.
Strategies need to be developed that can protect the American paycheck from disappearing.
7. Rey 7
2). The pressure to keep shareholders happy and to keep business competition matched
during the Internet-economic boom of the late 1900s was the driving force that pushed
companies to find more workers for less pay to maintain higher efficiency in product output.
This is analogous to the cause of working conditions in the “sweat system” of the late 1800s and
early 1900s. The return of subcontracting work out by outsourcing depicts similar patterns of
oppression and abuse on workers. The very conditions Americans fought so hard to eradicate are
in jeopardy. The organizations that outsource work to foreigners abate the workplace rights,
reducing wages and benefits by shifting the control from employees to executives. It makes the
common worker easily exploited because he or she is expendable and weakens his or her
bargaining position. Outsourcing creates ambiguity which allows the institute to evade
employment and labor laws driving down standards for all workers. This obfuscation of liability
reflects upon the worker and produces low moral. Moreover, the organizations of unions to
protect the worker are diminishing because there are many loopholes in this “sweat system” type
of higher efficiency (“Living Wage Policy in an Era of Outsourcing”). Policies need to be
revisited to ensure the rights and work conditions of employees are sheltered.
Section 482 of the Internal Revenue code levies taxes (in theory) on every transaction
between American operations and foreign ancillary aspects, but more often than not these
outsourced companies are not paying taxes to the United States or to the countries they have
moved into. Conglomerates find ways of inflating the prices paid to their foreign subsidiaries
making the foreign profits look bigger and thus they evade taxes on both sides of the border
(Dobbs, p 61). This puts the burden on the purse strings of hard working Americans to pay taxes
for hospitals, roads, and schools. Certainly this is the drawback of a flimsy outsourcing rule and
stiff enforcement should be mandated on corporations come tax time.
8. Rey 8
3). As for expertise, India is now producing 300,000 college graduates with engineering
degrees per year which is about six times that of American graduates (“Outsourcing: A Brief
Timeline”). Granted foreign workers are intelligent, but using them to replace American
graduates reduces the ambition of students to pursue a college education, weakening the strength
of the nation. Employment rates for young college graduates age 25-35 declined 3.4 percent from
1989 to 2003, clearly marking a feeble labor demand for newly sprouted workers (Bernstein).
Additionally, a “new discrimination” for Americans to brood over has appeared with the
anomaly of insourcing jobs from other countries. Senior News Editor, Kate Evans-Correia, wrote
in May 2002 that Guy Rich, Senior Systems Engineer at Integrated Digital Systems said he knew
of numerous colleagues having difficult times finding work because of H1-B visa workers. These
foreign workers are granted visas taking the scarce American jobs available. Purportedly
powerful lobbying groups are manipulating lawmakers with false employment statistics that
benefit the key players of the IT world, like Microsoft and Sun. Rich faced this problem himself
when bidding a contract in Nebraska. The hiring manager told him if he could not decide a good
rate he could get an East Indian to do the same job cheaper. This has the odor of discrimination
toward the American workforce. American workers need policies that prevent job displacement
by foreigners.
A worse scenario is the threat created by these “expert” foreign workers who are not held
accountable for the same work ethics that American workers are. In an article from “Offshoring
Medical Work Saves Lives” the shortage of radiologists and the extreme need for sophisticated
scans for prompt diagnosis brought doctors at Altoona Hospital in Pennsylvania to utilize
outsourcing as a method of solving problems. Saving lives is indeed critical, but what about the
security of those files sent with personal data to medical transcribers in other countries? How
9. Rey 9
qualified are the technicians to review those medical records? There is no guarantee on the
security of these files or on the use of qualified consultants, “But even when the spotlight was on
medical transcription, there were concerns regarding the security of transfer of patients' vital
medical data, and the quality of service delivered by offshore consultants” (Offshore
Outsourcing World). Perhaps this seemingly positive information on outsourcing is not so
affirmative.
Further security matters brought to light are the mounting costs worldwide to consumers,
businesses, and government organizations costing $221 billion in losses for 2003 and escalating
at a 300 percent velocity, which may reach $2 trillion by the end of 2005 (Gonsalves). As far as
security evils this points to less beneficial factors where the pocket is concerned: unreliable
accountability of foreign experts and unfair bias toward Americans as they get pushed aside for
“cheaper expertise”. A course of action that eliminates this type of outsourcing is called for not
only to protect the properties of Americans, but the very well-being of the state. Access to
American identities by terrorists has already proven deadly given the recent 9/11 horror.
Witnessing family, friends, and fellow employees being reduced to part-time status,
suffering lay offs, or losing a job themselves is heartbreaking for Americans. As big corporate
giants take up outsourcing Mom and Pop businesses are failing at an alarming rate and people
are dazed that their long-term, secure jobs are evaporating. Educated, qualified professionals are
scrambling to get hired—anywhere. Outsourcing shows no signs of adding jobs to the American
portfolio. But it does show great profits for Business Process Outsourcing (BPO).
Michael F. Corbett’s book, The Outsourcing Revolution: Why It Makes Sense and How
to Do It Right, remarks that BPO is a $6 trillion global industry involving thousands of
companies. Corbett elaborates that outsourcing is one of the fastest growing industries. The
10. Rey 10
reason for this, he points out, is that formerly uncompetitive companies are now in the competing
arena because outsourcing is at the center of rapid commoditization, knowledge-driven
operations, competitive advantage, and outside specialist activities that create this new ground of
competition in the global marketplace. Corbett says, “Far from being bad for businesses or their
workers, outsourcing is one of the most important and powerful forces available for building
successful companies, creating economic growth, and generating and enhancing jobs” (Corbett,
qtd. in Amazon). According to 2004 figures, company success, economic growth, and job
enhancement may not include anything on American soil. There were staggering profits from
foreign countries’ yearly services to American companies who outsource to them. India is
leading at $9.5 billion profit margins, Ireland at $6 billion, Israel at $2.6 billion, the Philippines
at $1 billion, and Russia at $800 million (“Outsourcing: A Brief Timeline”). Profits of other
countries soar. Abandoned America’s trade debt ratio enlarges and her people remain in jobless,
underpaid, and/or exploited situations while awaiting the time bomb of identity theft terror.
Conditions of job growth are bleak on native soil. Lay offs and company closures besiege
the poor and middle class because of outsourcing. This matter has so agitated Americans that
vigilantes are speaking out. Renowned receiver of The Man of the Year Award 2004 from The
Organization for the Rights of American Workers, Lou Dobbs explores the impact of
outsourcing on American workers in his book, Exporting America: Why Corporate Greed Is
Shipping American Jobs Overseas. He lists over 800 major American companies either sending
American jobs overseas or choosing to employ cheap overseas labor instead of American
workers (167-96). In four months that figure rose from February 2004 at 150 companies equating
to 162.2 companies a month abandoning America (“Lou Dobbs Lists Outsourcing Giants”).
Dobbs shares examples of job loss in the past few years; a) New York – 10,000 jobs gone,
11. Rey 11
Carrier plant closes, b) Pennsylvania – 132, 000 jobs vanished, evaporation of manufacturing and
high tech positions, c) New Jersey – 7,000 jobs moved out, embroidery outsourced to foreign
countries, and d) 96 % of clothing production is no longer done in America. If that is not taking
the shirts off American backs think about the figures Dobbs mentions from Forrester Research,
“$151 billion in wages will be shifted from the Unites States to lower-wage countries by the year
2015” (Dobbs, 8-34). That is a lot of lost American wages going to foreign workers.
The odium of outsourcing can best be demonstrated by out-of-work Americans—
themselves. In Spokane, Washington Terry Luding explains results of outsourcing on his
retirement plan after working for his company 27 years. His former company filed bankruptcy
after he was forced into early retirement; the government took over the pensions making him
lose his healthcare benefits. Nancy Stockton of Springfield, Missouri (Fasco employee, 32 years)
now gets paid half of what she used to earn after her job was shipped out to Mexico in 2002
(Rescue American Jobs).
In The New American, January 26, 2004, an article called “Losing America’s
Livelihood” sums up in one sentence the malignancy of outsourcing on America if left untreated,
“The U.S. is headed for Third World status unless we change government policies that are
driving U.S. businesses offshore, destroying jobs and putting entrepreneurs out of business”
(Jasper).
The outsourcing infection grows and America “is” getting abandoned. The cure resides
within the authority of her people to honor and defend her by promoting reformation policies—
immediately.
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