Firms should not be investing abroad when there is a need for investment to create jobs at home.discuss.

Question

reason for investing abroad

Answer 1

There was an article about outsourcing in I think Time magazine.  They showed in St. Louis a phone company laid off its support staff who was getting paid $20 an hour.  What they did was take the operations to India and paid the workers there $3 an hour.  So the company is saving $17 per worker an hour.  Major savings!!

So some people might complain that we are ripping off the foreign worker by paying them $3 an hour when really that isn't true.  $3 an hour in their country put them in a high middle class.

I feel bad for people who have lost their jobs but that is how business works.  You would have a struggle between the employees and the investors who want a larger profit.

Answer 2

The labor in the U.S. is some of the highest costing in the world.  Labor is FAR cheaper in developing nations.  In order to keep prices down in this market companies must offset costs somehow and this is doing through investing in other countries and their respective workforces.

Answer 3

Corporations have an obligation to increase shareholder wealth, not act as job providers.  If they can get the same quality of work cheaper overseas, then they are obligated to do so since it is in the best interests of their shareholders.

Answer 4

No, they should not. What ought to be done is to tax them heavily if they outsource. If they want to get out of America? Let them do it. They will learn.

If the corporations have the obligation to shareholders, then our government also has the obligation to save our jobs. And they must!!!!