Impact of Exporting Jobs on the US Economy

Running head : UNITED STATES ECONOMY

Impacts of exporting jobs on the U .S economy

Name

Course

Lecturer

Date Outline

Abstract

Introduction : United States Economy- Job Market

Reasons Why Companies Support Outsourcing

Corporate America and Outsourcing Policy

Outsourcing , Globalization and the Job threat

Impact of Outsourcing on the United States Economy

Solution

Conclusion

Abstract

Economists are not in agreed on how outsourcing affects the economy and the job market . While arguments have been placed in support of this practice , others have argued that

it does much injustice to the United States workers . This seeks to look at some of the contentious issues surrounding this practice and how they can be solved . It particularly looks at the effect of outsourcing on the workers , United States economy and why multinationals and major economists are in support of the practice . It also looks at some of the measures that the United States government can take in to protect its workers from the harmful consequences of outsourcing

Introduction

Domestically produced merchandise in the United States have been an important source of employment for its citizens traditionally . The number of jobs created by the exports alone almost two decades ago amounted to more than 5 million . In other words , more than 22 ,000 jobs were supported by each one billion dollars of exported merchandise . Out of every 16 full time jobs held in the United States in 1987 , one was an employee in the exports sector . The exports however did not just include those generated in the production of the final goods for export . It encompassed all jobs directly or indirectly relates with export . For instance , the computer chip developer of Dell to the electronic store owner . In other words , in every job created in the exports , more jobs are indirectly created . In the year 1987 , the rise in merchandise exports led to a rise in the number of jobs created by exports . Statistics show that in 1987 , jobs related to export increased by 8 percent and continued strongly through 1988

Civilian employment and the growth of the United States economy since 1983 was largely attributed to the resurgence of export volumes . A growth in the exports has significantly affected employment in the sense that an increase in the exports has led to an increase in export related jobs . However , in recent times , the job market in the United States has been largely affected by globalization . The fact that companies can relocate and hire from any country has greatly affected the export sector and therefore employment . Companies are seeking for the best ways of doing business while at the same time maintain or improve on human resource . There is an increase in demand for skilled workers than less skilled workers , an increase in demand for cheap labor and an increase in demand for cheap resources . This has resulted in widening of the gap between skilled workers and less skilled workers in terms of salary and wages . Even the export industry is demanding for highly...