Global outsourcing is good for several reasons, companies can acquired products from around the world with a more competitive price and sell them locally. A large number of goods and products sold in the USA are made in China. Some companies open factories in China and others have contracts with chinese factores to manufacture their products.
Products made in China have a lower cost for companies, because the chinese currency (yuan) is weaker than the US dollar. Is this good or bad? It maybe good for companies, because they pay less for the products and sell them with a high profit. The US government have critized the weak yuan and want the Chinese government to increase the currency rate in order to protect the US trade and workers. Is it really true or is it more a political issue? No doubt job migration could have a negative impact in the local economy, but some may argue that new jobs will be created to replace those lost to job migration.
http://news.bbc.co.uk/2/hi/business/7035009.stm
Products made in China have a lower cost for companies, because the chinese currency (yuan) is weaker than the US dollar. Is this good or bad? It maybe good for companies, because they pay less for the products and sell them with a high profit. The US government have critized the weak yuan and want the Chinese government to increase the currency rate in order to protect the US trade and workers. Is it really true or is it more a political issue? No doubt job migration could have a negative impact in the local economy, but some may argue that new jobs will be created to replace those lost to job migration.
http://news.bbc.co.uk/2/hi/business/7035009.stm
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