Monique Ramos Balte

BSBAOM3A

CASE: Moving U.S White-Collar Jobs Offshore

1. The ones that benefit from these skilled white-collar occupations being outsourced to rich
nations are the developing nations that receive them. The Flour Corporation, a Texas-
based construction company, favors hiring highly qualified individuals from outside
sources. The reason for this is that doing so results in a 15% cost reduction for their
project, giving their company a cost-based competitive advantage in the global market for
building design. Due to the cheaper cost of producing their goods with less expensive
labor, these enterprises will profit more as a result of the jobs this creates in the
developing country. Businesses that also hire workers from underdeveloped countries
aim to gain from cheaper labor costs, giving them a stronger competitive edge in the
global market. If skilled white-collar occupations continue to be outsourced to developing
countries, the country where the corporation is headquartered would ultimately lose out.
Employment will decrease in the country where the company is based. The workers who
held those white-collar positions before to relocating to a developing nation will
experience an employment loss. If a corporation begins to export white-collar positions to
developing countries due to reduced labor costs, there is a strong likelihood that this will
harm not only the people but the country as a whole. Unfortunately, when there is less
employment available for unskilled employees, people may experience acute poverty.
Poverty has no positive effects on the US economy because it reduces consumer
expenditure and tax revenues.

2. Yes, they will, and when blue-collar employment is lost, the United States will suffer
from the loss of highly trained and well-paying jobs. The country's unemployment rate
will rise as a result of this. A country will be impacted by high-skilled workers and high-
paying occupations since they play a significant role in the economy of that nation. If
expenses are significantly reduced, a company will be more profitable and have a greater
competitive edge globally. Although the United States is a developed nation, it will still
affect them since highly qualified workers and high-paying jobs are crucial components
of economic growth. As a result, other countries are keen to outsource talented workers
and high-paying jobs to boost their competitiveness in the global market.
3. There is a contrast between the movement of high-paying white-collar jobs to emerging
countries and the transfer of low-paying blue-collar jobs. Compared to high-paying
white-collar employment that is moved to emerging nations, low-paying blue-collar jobs
are outsourced since they require a huge workforce and expensive labor costs. In contrast,
high-paying white-collar jobs demand more funding to pay each employee individually
but fall well short of supporting all low-paid workers. Businesses outsource for their
financial gain. If they outsourced their highly desirable white-collar positions, they would
seem greedy. The government should prevent this from happening because it is un-
necessary for these firms to do this and should be limited if it is. Every country needs
jobs for its residents and for the good of the entire planet. They must regulate job
outsourcing if they want to retain people working in their own countries.