When you run a company that requires manufacturing in the US, quality and cost of manufacturing comes into consideration. It is important to keep the cost low but the quality high. When a company decides to outsource manufacturing from the US overseas. Choosing the right partner is very important. However, there are several advantages of outsouring manufacturing overseas.
The amount of skilled workers from overseas is vast. There are people who have the technical skills that can make a good argument to outsource manufacturing from the US to overseas. They also cost a fraction as the companies and workers do in the United States.
Outsourcing manufacturing is an advantage to both the United States and its international partners. According to ncbfaa.org, “the U.S. economy engages in international trade and obtains needed goods at lower cost, which results in better returns on investment and more economically priced goods for U.S. citizens.”
While it’s positive for the US economy, it’s also helpful for international economies. Foreign economies are boosted when the demand for products is higher from U.S patrons. Demand for products will increase production and satisfy customer needs and also stimulate the growing economies of their countries of origin.
A lot of countries rely on global marketing. It’s more than just for the sake of the U.S. The United States depends mostly on imported products. Therefore, the United States is a part of the global marketing chain.
When other countries are included in manufacturing for U.S products it helps other countries stimulate their own economies while also decreasing their unemployment rate and providing a better chance of life and survival in countries that aren’t as lucky as the United States.
It’s not about foreign countries getting money or U.S. companies getting money. It’s about helping to stimulate both economies.
“The U.S. economy and the world economy are linked in many ways. Economic developments in this country have a major influence on production, employment, and prices beyond our borders; at the same time, developments abroad significantly affect our economy.” said from George B. Grey’s book Federal Reserve System: Background, Analysis. and Bibliography.
While it helps stimulate the economy, the United States also gets products and imports from foreign countries at a lower cost than they would if they were to create the products in their factories in the United States.
Other companies in foreign countries compete to make the best quality product and sell it at a lower price than their competitors. The more these foreign country companies compete, the lower the price will be for the United States.
“The other part of outsourcing is this: it simply says where work can be done outside better than it can be done inside, we should do it,” said by Alphonso Jackson, former U.S. Secretary of Housing and Urban Development.