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OUTSOURCING

OUTSOURCING. Are we exporting our pollution along with our jobs?. What is outsourcing and why do it?. Transferring an organizational function/business function to another country Reduce costs Contracts Risk management Time Staff/workers. History- Outsourcing in the US.

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OUTSOURCING

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  1. OUTSOURCING Are we exporting our pollution along with our jobs?

  2. What is outsourcing and why do it? • Transferring an organizational function/business function to another country • Reduce costs • Contracts • Risk management • Time • Staff/workers

  3. History- Outsourcing in the US • 1980’s- US in a recession • Saw outsourcing as a return to profitability • 1990’s- potential worker shortage • NAFTA signed- American firms began looking at Mexico as both a market for export and a potential center of production.

  4. Pollution • EPA estimates that 40% of the mercury that sinks out of the air and lands in the USA comes from overseas. • Mercury emitted by power plants and factories Asia waft over to the USA and settles into the nation's lakes and streams • Dust from Africa's Sahara Desert blows west across the Atlantic Ocean and helps raise particle levels above federal health standards in Miami and other Southern cities. • Haze and ozone from factories, power plants and fires in Asia and Mexico infiltrate wilderness spots

  5. http://earthobservatory.nasa.gov/Newsroom/NewImages/images.php3?img_id=16712http://earthobservatory.nasa.gov/Newsroom/NewImages/images.php3?img_id=16712

  6. Are we exporting our pollution? • Have pollution levels really decreased as a result of outsourcing? • Are our pollution levels lower than the countries we are supposedly outsourcing to?

  7. http://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/publications/energy_reviews_2005/STAGING/local_assets/downloads/charts/C11834_bars_p31_coal_procon.gifhttp://www.bp.com/liveassets/bp_internet/globalbp/globalbp_uk_english/publications/energy_reviews_2005/STAGING/local_assets/downloads/charts/C11834_bars_p31_coal_procon.gif

  8. http://www.sightline.org/images/blog2006/dioxin-us-trends-chart-2000-2004http://www.sightline.org/images/blog2006/dioxin-us-trends-chart-2000-2004

  9. http://www.accf.org/images/Test399Fig8.gif

  10. http://news.mongabay.com/2007/0706-china.html

  11. Jobs • 90% of jobs in the US require geographical proximity • TPI Inc., an outsourcing advisory firm, even reports that the total value of business process outsourcing deals in the United States fell by 32 percent in 2003. • Unemployment is decreasing

  12. http://web.stratfor.com/images/europe/art/2_23_us_unemployment_rate_121.jpghttp://web.stratfor.com/images/europe/art/2_23_us_unemployment_rate_121.jpg

  13. Losing jobs isn’t something new • Citing the work of Forrester Research Inc., a technology research firm, Bradley says, "Of the 2.7 million jobs lost over the past three years, only 300,000 have resulted from outsourcing." Job losses and job gains have always been a part of our history.

  14. http://fixco1.com/manufactchart1ss.jpg

  15. Are we really losing jobs? • Forrester Research estimates that 3.3 million white-collar jobs will move overseas by 2015- sounds like a lot right? • About 220,000 jobs a year • Total employment will be about 152 million • Outsourcing would affect less than 0.2% of the American population • Boston University Professor NitinJoglekar has examined the effect of outsourcing on large financial firms and found that less than 20 percent of workers affected by outsourcing lose their jobs; the rest are repositioned within the firm

  16. New job economy • Federal Reserve Bank of New York suggests that the economy is undergoing a structural transformation: • jobs are disappearing from old sectors (such as manufacturing) and being created in new ones (such as mortgage brokering). In all such transformations, the creation of new jobs lags behind the destruction of old ones

  17. http://xcomputerman.com/pages/archives/2007/09/07/outsourcing/http://xcomputerman.com/pages/archives/2007/09/07/outsourcing/

  18. http://global-themes.com/wp-content/uploads/2006/09/body-count-economist.gifhttp://global-themes.com/wp-content/uploads/2006/09/body-count-economist.gif

  19. http://www.ncpa.org/pub/ba/ba480/images/ba480fig1.gif 1990-2004

  20. http://gavekal.com/forum3/attach.aspx/70/us%20wealth.bmp

  21. Conclusions • Is pollution really being outsourced? • Comes back to us • Are we really exporting our jobs? • New jobs created • Insourcing jobs

  22. Sources • http://www.usatoday.com/news/nation/2005-03-13-pollution-_x.htm • http://www.foreignaffairs.org/20040501faessay83301-p10/daniel-w-drezner/the-outsourcing-bogeyman.html • http://www.capmag.com/article.asp?ID=4113 • http://en.wikipedia.org/wiki/Outsourcing • http://www.sudhian.com/index.php?/articles/show/373 • http://www.mises.org/story/1248 • http://news.mongabay.com/2007/0706-china.html

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