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Outsourcing labor overseas, problems and issues.

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Should large chain stores continue to relocate labor overseas? Why or why not?

Is this a good business practice? Why or why not?

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Solution Summary

While labor overseas might seem cheaper, the real costs are not always readily evident. There are many financial, ethical, and legal issues to consider when outsourcing overseas. This article raises several issues for consideration when contemplating outsourcing labor overseas.

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Here are some things to consider:

1) Labor is cheaper overseas, but it causes jobs to be lost locally. So, that is a trade-off.

2) Technology can be duplicated overseas; which sometimes leads to counterfeits. Another issue is that when sensitive technology is transferred overseas, other unintended parties can benefit. This can be a problem with certain technologies that pertain to national security or competitive advantages. Examples can include: encryption, pharmaceutical ...

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