. How did U.S. manufacturers become vulnerable to offshore outsourcing
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The most probable way is that the hourly wage in the US is much higher than the hourly wage in many foreign countries.
i don't know dude
How did U.S. manufacturers become vulnerable to offshore outsourcing? Give examples to support your answers
U.S. manufacturers became vulnerable to offshore outsourcing through a combination of evolving economic factors and strategic business decisions. Here's an explanation:
1. Globalization and Trade Liberalization: The process of globalization and trade liberalization opened up opportunities for companies to access international markets and reduced trade barriers. This led to increased competition and the ability to source products and services from lower-cost countries.
2. Lower Labor Costs: Offshore outsourcing gained popularity due to the availability of low-cost labor in countries like China, India, and Mexico. By shifting production or service operations to these countries, manufacturers could significantly reduce their labor costs.
3. Technological Advancements: Advances in technology, particularly in transportation and communication, made it easier for companies to manage overseas operations. This allowed manufacturers to coordinate production processes, quality control, and supply chains across borders, making offshore outsourcing more feasible.
4. Changing Comparative Advantage: As industries and markets evolved, some manufacturing sectors in the U.S. faced increased competition and struggled to maintain a comparative advantage. Factors such as rising labor costs, stricter environmental regulations, and higher overhead expenses made it challenging for certain industries to remain competitive.
5. Business Strategies and Cost Optimization: Many U.S. manufacturers pursued offshore outsourcing strategies as a means to enhance their competitive positioning and profitability. By leveraging economies of scale and accessing cost-efficient supply chains, companies sought to streamline their operations and increase their market competitiveness.
It is important to note that offshore outsourcing is a complex and multifaceted phenomenon influenced by various economic, political, and societal factors. The reasons mentioned above highlight some of the key contributing factors to U.S. manufacturers becoming vulnerable to offshore outsourcing.