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CLOSING CASE: Exporting Jobs?




CLOSING CASE: Exporting Jobs?;Read case study in page 138-139 (book: Human Resources by Denisi/Griffin);American workers have become used to the fact that large organizations will occasionally;downsize their workforce and some people will lose their jobs. But in recent years, workers in;the United States have also had to deal with the fact that some jobs that are lost are actually;being exported to other countries where workers expect and are paid much less than their;Americans counterparts. Quite recently, however, this problem has spread to groups of workers;that had not been affected previously by the export of jobs.;Specifically, many Americans are aware of the fact that a person who receives an MBA from a;reasonable program can earn a great deal of money. In fact, a typical MBA with three years of;experience will earn about $ 100,000 per year. But, of course, that is for someone who earns an;MBA from a school in the United States and who works in the United States. In India, an MBA;with three years of work experience earns an average of $ 12,000 a year. Although this may;sound like a good reason to pursue an MBA in the United States, many American workers find;that this salary differential turns into a serious disadvantage.;For a quite a few years, U. S. and European-based companies have been exporting low-level;manufacturing jobs to Latin America and Asia. Everything from designer polo shirts to cars are;often manufactured for U.S. (or European) companies at some offshore location, and then;shipped back to America for sale. But now, while U.S. companies are continuing to export lowpaying, semi-skilled jobs overseas, they are also beginning to export white collar jobs overseas.;In 2000, it was estimated that the United States exported white collar jobs that generated $ 4;billion in payroll. By the year 2015, it is expected that the United States will export $ 3.3 million;white collar jobs and $ 136 billion in wages abroad.;Large U.S. companies are in fact leading this trend, with companies such as IBM, Microsoft, and;Procter & Gamble exporting thousands of white collar jobs to lower-wage markets. The types of;jobs that are being exported cover a wide range. As already noted, for instance, manufacturing;jobs have been exported for a number of years, In recent years, many call center jobs have also;been exported overseas. But today, jobs such as financial analysts, architectural drafters and;accountants are being exported as well. For example, data from the Department of Labor;indicate that, in the year 2000 there were essentially no management jobs being sent overseas;but in 2005, almost 40,000 such jobs have been lost by American workers. This is in addition to;the over 100,000 computer jobs and almost 300,000 office jobs exported by 2005. This is;outsourcing on a huge global scale, and not surprisingly, many people are upset about it.;Of course, workers themselves are worried. Halfway through the fiscal year 2006, the;unemployment rate in the United States was about 6 percent, by late 2009, this figure had;ballooned to 10 percent. These numbers, of course, fuel worker concerns about the loss of their;jobs and can actually lead to higher unemployment rates. Even when companies are growing;and can assure workers that exporting some jobs will not affect them in any way, workers are;worry about the future. Organized labor is also concerned about this trend, which they argue is;a threat to the American middle-class workforce. As a result, unions such as the;Communications Workers of America have actually called for a congressional investigation into;the large-scale exporting of jobs. It will be interesting to see how this trend, and the labor;movements reactions to it, might translate to gains in unionization among white-collar workers;in the future.;The reason for exporting these jobs is actually quite simple: the wage differentials between;workers in the United States and workers in countries such as India are huge. Yet Indian;workers are well educated and highly motivated and, with a little training, can speak colloquial;American English quite well. That combination is difficult for many firms to resist. Clearly, if they;can provide quality goods and services at lower cost, they can increase sales and profits as;they increase their competitive stance relative to other firms in this country and abroad.;Although some experts claim that the real threat to American jobs is not great, and that it will;become more apparent as the economy improves, others see it as a real problem and have;actually refused to send jobs overseas even though they could save money by doing so. It is;difficult to see any reason why this trend would slow down in the future, unless there is much;more pressure from legislative bodies and groups of workers (organized labor and others).;Without such pressure we must assume that the problem will become more serious, and we will;have to see exactly what the impact on the American workforce and American Economy.;QUESTIONS;1. What kinds of jobs are more and less likely to be exportable?;2. In what ways is this issue similar to and different from controversies about using illegal;aliens to perform low-wage jobs inside the U.S.?;3. Can you identify foreign jobs that are being performed inside the United States?;View Full Attachment;Additional Requirements;Min Pages: 1;Level of Detail: Only answer needed;Other Requirements: Be specific


Paper#17255 | Written in 18-Jul-2015

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