Thursday, March 27, 2014

Depending on China


Offshoring and Outsourcing may limit jobs in the U.S., but it's the invisible force that drives us to want to be an economic fist in the world. If you ask me, I think the person who started the offshoring movement is the smartest person I've heard of. As a result of it in the United States, China became one of the many powerful countries. Manufacturing companies in China are equivalent to our local dependency on Walmart in the U.S. - in a sense that everything is affordable, and in good quality - to everyday American’s; they become the main source countries rely on.
America is always getting involved with foreign territory. Most of the time, it shouldn't happen. Since we're always trying to "help", offshoring these companies could create a lot of jobs for low wage workers. There's such a huge demand for certain products that a lot of “productivity have... lowered the price of labor as a percentage of total product or service costs.” It goes back to this idea of the capital and how there’s a certain limit to who can work based on supply and demand of that country. If a lot of people are needed, the government has to create a certain minimum wage. Since China is so big, and they’re mostly trying to stay on the top of the economic chain, I could see how the government would find some low wages reasonable.

The Apple Company is an example of a big cooperation. Electronics are what the new trends are aiming towards. It’s also why, as Connor said, we’d possibly never go into war with countries like China. Since eastern countries are by far a bit more advanced, companies like Apple stick around them more. It’s not a bad thing. Without the cheap labor, IPhones, Mac’s, etc. would be like $1000. Nobody needs that. Bloomberg Industries closely study successful companies like this; and it shows how “Apple Inc.…boosted its China workforce 50 percent in two years to 1.2 million” so they can “meet demands.” It’s a big deal. The world is playing in a really fast paced game of monopoly. The Chinese are constantly raking in money because everyone is landing on their “property” for things that they need produced, cheap.
The question that’s still raised is whether or not China outsources. It’s kind of hard to tell if China does offshoring. From the looks of it, they might not do it as much as the U.S. does. Outsourcing is different. China had done it at some point. To boost their own economy they’d tried to get some sort of manufacturing and workers to Africa a few years ago. From the information provided it would have economically harmed Africa. Shanghai Automotive Industry Corporation is one of their current top industries. Jobs were outsourced to the United Kingdom for their production facilities. It was kind of surprising though; mostly Chinese cities maintain their own business.
Overall, it seems China attempts to keep their industries/corporations within their own territories. Many countries just want to get their money’s worth when it comes to manufacturing their products. It means more money for the Chinese government, country, and overall economy. The sad part is that no one really thinks of anything else besides how cheap everything costs. It may seem like more jobs are opening up for these people, but work conditions - especially in these rich manufacturing's like Apple - are still unknown; cheap labor could mean that minors are working to survive. You never know. Overall, China is really successful.



Jr., Ben. "Why We Can All Stop Worrying About Offshoring and Outsourcing." The Atlantic. Atlantic Media Company, 26 Mar. 2013. Web. 28 Mar. 2014. <http://www.theatlantic.com/business/archive/2013/03/why-we-can-all-stop-worrying-about-offshoring-and-outsourcing/274388/>.

Branigan, Tania. "China 'wants to set up factories in Africa'." theguardian.com. Guardian News and Media, 4 Dec. 2009. Web. 29 Mar. 2014. <http://www.theguardian.com/world/2009/dec/04/china-manufacturing-factories-africa>.

"SAIC Motor." Wikipedia. Wikimedia Foundation, n.d. Web. 29 Mar. 2014. <http://en.wikipedia.org/wiki/SAIC_Motor#Production

Worstall, Tim. "Once Again Apple's Foxconn And Offshoring The Best Thing That's Ever Happened To Chinese Labour." Forbes. Forbes Magazine, 4 Mar. 2013. Web. 29 Mar. 2014. <http://www.forbes.com/sites/timworstall/2013/03/04/once-again-apples-foxconn-and-offshoring-the-best-thing-thats-ever-happened-to-chinese-labour/>.

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