Should the government protect American jobs by imposing stiff Essay

Should the government protect American jobs by imposing stiff penalties on companies that transfer jobs offshore by outsourcing or manufacturing in a different country - Essay Example The US companies have also taken advantage of this scenario to tap the resources available outside their geographical boundaries for which the operations of the US companies have been outsourced. The US companies have undertaken cost-benefit analysis and have taken strategic decisions in some cases to establish the productive units for manufacturing outside their own country. This has created shortage of employment opportunities for the people of US as more number of US companies started to create offshore jobs either by outsourcing or through foreign direct investments. This has led the US government to design policies for restoring the decline of American jobs for which huge penalties were imposed on the companies that were engaged in transferring job to the offshore industries either by outsourcing or through investments in the foreign economies. This paper argues the fact that the US government should not protect US jobs by imposing penalties on the US companies that are setting up manufacturing processes or outsourcing jobs to the foreign economies. The severalbenefits due to the activities of the US companies in undertaking the process of outsourcing business operations or engaging in the foreign direct investments and carrying out offshore manufacturing activities have been discussed as follows. The US companies which have either outsourced the business operations or set up manufacturing facilities in the foreign countries have been able to stimulate free exchange of economic resources between the countries in the international trade. This has supported the growth of free market and free trade in the global platform (Kehal and Singh 62). The setting up of manufacturing facilities and outsourcing of business operations has influenced the growth of competition in the foreign economies. This has led to the rise of competition in the international business context. The