Globalization of Manufacturing

Paper Summary:

The intent of this paper is to provide an overview of both the perception versus the realities of global manufacturing. The writer points out that the reality of outsourcing is that it is a global business dynamic that reflects a company's need to follow the lowest cost of manufacturing, service and support around the globe. In addition, the writer notes that the Internet has forced the responsibility of global competition on previously parochial, regionalized businesses. The writer concludes that that the Internet and globalization has forever changed the face of global competition, and that offshore outsourcing is going to continue and grow due to cost advantages.

Outline:
Summary
Financial Implications for the U.S. Regarding Outsourcing
Offshore Outsourcing Has Become the Political Football of Choice
Conclusion

From the Paper:

"The key take-away from the debate at the CEO Forum was not necessarily how key economic indicators are defining varying degrees of growth or lack thereof in the American economy. Rather, the discussion made one very glaring and uncomfortable fact true; unions and their usefulness are quickly losing relevancy, and in a globally competitive arena, labor costs will make or break the long-term competitive strength of any nation. Artificially inflated labor rates, as Ford Motor Company has done for example, are a strategy that no longer works as the auto company's recent financial performance proves. Jobs and professions that require brains over brawn and muscle dominate high growth professions, and while Democratic party officials worry about the loss of their constituents from unions, the broader fear that needs to be confronted is equipping the next generation of American workers with the intellectual tools to compete, not simply an attitude of entitlement that tends to pervade households where multiple generations have been in unions."

Sample of Sources Used:

• Drezner (2004) - The Outsourcing Boogieman. Foreign Affairs Journal. May/June 2004. Washington, DC. Accessed from the Internet on November 13, 2007: http://www.foreignaffairs.org/20040501faessay83301/daniel-w-drezner/the-outsourcing-bogeyman.html?mode=print
• Liz Peek Shrinking Unions Push Democrats toward Protectionism, New York Sun newspaper. Published November 14, 2006 and accessed from the Internet on October 31, 2007 from location: http://www.nysun.com/article/43448 and http://www.nysun.com/pf.php?id=43448
• David Gram. Sanders' vows to continue fighting outsourcing of U.S. Jobs. Boston.com and Associated Press. September 23, 2006. Accessed from the Internet October 31, 2007:http://www.boston.com/news/local/vermont/articles/2006/09/23/sanders_vows_to_continue_fighting_outsourcing_of_us_jobs/
• Greg Hitt - Protectionist Stance is Gaining Clout. Greg Hitt, Wall Street Journal. November 6, 2006. Page A4. Accessed from the Internet on October 31, 2007 from location: http://online.wsj.com/public/article_print/SB116277226395813918-TvtW_7IYYvHHLZCbZTWcbV3_aQc_20061205.html
• Michael McCarthy. Dobbs Fires Away Against Outsourcing. USA Today. February 22,2005. Money Section. Accessed from the Internet on October 31, 2007 from location: http://www.usatoday.com/money/economy/employment/2005-02-22-dobbs-usat_x.htm

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