©2016 Mr. Breitsprecher & BreitLinks (www.breitlinks.com) All Rights Reserved Outsourcing: Page 1
Marketing I Name: ______________________________
International Labor Markets: Outsourcing to India
Over the past two decades, many companies
have laid-off American workers to lower
labor costs. Companies may decide that
costs are lower and profits are higher when
they lay-off U.S. workers and hire extremely
low-cost foreign workers.
Two particular jobs – programmers and call center operators – have been exported to India in
high numbers. A TV show called “30 Days” told of an American programmer who actually
went to India to get his job back! There, the laid-off American worker found an abundance of
programmer and call center jobs. The question of outsourcing and the loss of American jobs has
sparked political debate. As globalization continues, corporate leaders and politicians will
continue to debate:
1. Is outsourcing fair?
2. Should governments intervene to limit outsourcing?
Please list and explain 2 advantages & 2 disadvantages of outsourcing
domestic jobs to other countries
o Advantage 1
o Advantage 2
o Disadvantage 1
o Disadvantage 2
Remember, workers in some
countries may work for sub-
poverty wages. Currency
exchange rates can make this
worse, distorting the relative
values of earned wages
.
