Question
Outsourcing There has been much talk in recent time about outsourcing and sweatshops. Outsourcing is usually defined as occurring when a company chooses to export
Outsourcing
There has been much talk in recent time about outsourcing and "sweatshops." Outsourcing is usually defined as occurring when a company chooses to export some of its production to foreign countries. Jobs in which foreign workers work in "sub-standard" conditions and are paid lower wages (than their American counterparts) are typically referred to as "sweatshops."
- What are some of the economic reasons why some firms choose to relocate some of their productive facilities to foreign countries?
- With regards to low- and high-skill laborers, which domestic (American) workers may gain from outsourcing, and which domestic workers might lose? Why is this the case?
- With respect to the types of products produced by companies that outsource, what effect may outsourcing have on domestic prices of these products?
- If the US government wanted to reduce outsourcing, what changes in policy could it make to do so?
- Please watch the following 2 videos regarding "sweatshops."
Inside Look at Apple's Chinese Sweatshops!
https://www.youtube.com/watch?v=unrZw5qZzws
John Stossel - Sweatshops
https://www.youtube.com/watch?v=7dwFW62iNrU
6.Describe the main points of EACH video. What evidence do they present to reach their overall conclusions?
7. After watching the videos, please tell me if "sweatshops" are a good or bad thing for foreign workers? WHY? You need to thoroughly explain your answer.
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