What is outsourcing & Why do companies outsource

Outsourcing can be dened as the strategic use of outside resources

to perform ac5vi5es tradi5onally handled by internal sta and
resources.

Some common reasons:
Reduce and control opera5ng costs
Improve host company focus
Gain access to world-class capabili5es
Free internal resources for other purposes

Companies that outsource their businesses:

The most targeted countries:

Pros
Prevent outsourcing
Increase employment rate
Compe55ve advantage on domes5c companies

Cons
Revenge
Less ecient use of workforce
Lazy US company
Resist of free trade
Reduce imports

Ethical Principles,
Values, and Rights
Evaluate:
Protability (shareholders)
Legality (society at large)
Fairness stakeholders (fair
distribu5on of benets
and burdens)
Impact on the rights of
stakeholders
Impact on sustainable
development
(environment)

Pros for manufacturing

overseas
Tax 35% vs 17%
Shorter manufacture to market
5me
Increased opera5ng capital and
cash ow
Access to large pool of skilled
workers
Lower labor cost

Cons for manufacturing

overseas
Quality control
Order quan55es
Communica5on barriers(delay or prevent)
A 30% deposit is required to start manufacturing overseas
Shipping (Expense and Time)
Conden5ality Issues

Hillary Clinton

While she does believe that outsourcing benets America in
SOME ways, she does "not think we should be thinking of our
people as commodi5es, and [she] certainly do not believe
[outsourcing] is a good thing."
She believes that the White House that turns a blind eye to
the damage that is being done to the American economy:
loss of jobs
loss of income
loss of self-condence

Donald Trump
Donald Trump plans to punish companies seeking to move opera5ons overseas with
"consequences."
This would produce an unusual amount of White House interven5on in private
enterprises.
Incen5ves for companies that stay in the United States
lower corporate taxes
reduced regula5ons


However, Trump's daughter, Ivanka's company has it's factories in China and
therefore contributes to the outsourcing epidemic in American Business.

Recommended Course of AcDon

Donald Trump has a very prac5cal business standpoint when it
comes to keeping American businesses in America, however,
his approach towards punishment seems a bit too strong to be
eec5ve in the United States. In contrast,
Hilary Clinton views the outsourcing problem as something
that is inevitable, but is ac5vely looking for ways to bring jobs
back to America. Clinton's approach is more towards
improving the American economy overall than to eliminate
outsourcing altogether.

Conclusion
I think that Clinton's plans to create more jobs within our country is a
much befer approach going forward because it focuses on changes
that we can make and processes that can be improved.

Outsourcing According to the Simpsons

hfps://www.youtube.com/watch?v=vFH71CkKowU

Works Cited
hfp://www.chicagotribune.com/business/ct-trump-carrier-jobssubsidies-20161201-story.html
hfp://www.ib5mes.com/poli5cal-capital/hillary-clinton-saidoutsourcing-beneted-america-amer-she-cri5cized-bush
hfp://circa.com/poli5cs/elec5on-2016/hillary-clintons-outsourcingproblem-with-union-workers
hfps://saltsha.com/manufacturing-overseas-pros-cons/
hfp://sourcingoverseas.com/the-pros-and-cons-of-overseasmanufacturing