Business Incentives Overseas

Case Study Response Week 1

There are many incentives to use overseas manufacturing but not all of them are welcomed positively. The pros and cons for using overseas manufacturing can be related directly to the job you hold. Many studies are indicating that a significant number of jobs can be lost in the overseas manufacturing shift yet management of these companies maintain that they are creating more jobs for their companies by cutting cost. This cost cutting option becomes more and more compelling in the need for companies to maintain a strict budget to achieve a desired profit margin. Bigger and more well-known companies are making the shift to overseas manufacturing in order to increase savings and cut cost.

In addition to a willing workforce many companies are responding positively to the cost and quality that indigenous overseas vendors are offering. Many Fortune 500 companies have combined together in an initiative to look to combine local and overseas resources to offer customers the best of both worlds. Since these markets are placed in a growing economy they escape the current depression affecting some industries within the United States.

Overseas manufacturing though will continue to be the wave of the future. The only segment not to eventually move to overseas may be government because of the potential political consequences. Eventually though offshore providers will win out as they have in the manufacturing industry since parent companies will have no option but to produce things as cost-effectively as possible. If a quality product can be done quicker and cheaper than companies will eventually make this shift, it will become less of a trend and more of a way of life.

While I agree we need to help encourage economic growth and development in the third world the current model of outsourcing and investment isn't a stable or good thing. The people that win big are the already wealthy minority of the world. Our own workers are being...