The Effects of Offshoring Between the Us and China

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The Effects of Offshoring between the U.S and China Nowadays, offshoring is a popular topic. The offshoring let some countries the development of all aspects of. According to Dyer (n.d.), "Forrester Research estimates that 3.3 million white collar jobs will be outsourced by the year 2015" (para. 2). Offshoring is a type of outsourcing that involves the relocation of a company's business process or processes to a foreign country. From a long time ago, offshoring to other countries from the United States has been a common practice; however, both two countries have pros and cons. However, with offshoring bring positive things, but also accompanied by many risks. In comparing China and the United States, there are several positive and negative effects of offshoring. Is offshoring a good thing or a bad thing? The following comparison will examine this question. Offshoring has brought several positive aspects to China. On the one hand, China has more and more positive things such as growing economy, increasing wages, expanding the middle class, and so on. First of all, due to offshoring, China's economy is growing. According to Dyer (n.d.),"The economy of China is undergoing unprecedented growth and structural change...China saw economic growth of 11.2 percent..." (para. 3). Offshoring has made China to improve significantly, resulting in rapid development. "The recent wave of offshore souring has certainly generated rapid income growth in the target countries, at least for some sectors of the population" (Levy, 2005, P.691). Therefore, China gets more wages during this time. "Workers demand higher wages and more of the population is becoming a market for their own country's products, thus reducing the drive to export" (Aronson, 2008, para. 4). Finally, China's middle class likewise is increasing because they have more jobs and more wages (Dyer, n.d., para. 3).
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