Journal Topic 9: The Myth of Outsourcing's Effect‏

  Globalization is a crucial part in companies and firms going outsourcing. Outsourcing happens as companies expand outward for cheaper labor causing the more middle class people to lose their jobs. However that is not all bad as when it comes back to them, they will actually receive a better job than the one they started out with due to other companies outsourcing. Production and efficiency relates to outsourcing as the production is cheaper in foreign countries like China and therefore can be alot more efficient by finding more workers in a single plant for the equal wage as the wages of the people in the United States. Without outsourcing, the cost of producing something will gradually increase, as the labor stays in the country, but the product is now two three times more expensive to make due to the more expensive labor, with the outsourcing is the complete opposite, which drops the price of the good due to the cheap labor forces and less production cost as when it comes to labor. Out sourcing could be potentially related to the opportunity cost as with the outsourcing technique, it is achieving its best with production as well as efficiency, however as outsourcing becomes not available, you have to find the next best alternative which is to find labor in the country itself with higher costs of production as labor forces becomes more expensive