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Outsourcing is a one way for enterprises to escape constricting government regulations and high corporate taxation. Other liabilities such as pensions and healthcare burdens are either reduced or removed from the company’s bottom line. Some enterprises could use the threat of outsourcing to aggressively negotiate labor agreements.
The advent of outsourcing brought many issues to light. Some of these are: political pressure, tainted corporate reputation, and the real threat of global instability (Musthaler, 2004). American companies are continuing to struggle to compete in the world marketplace because of increasing legacy costs, unfair tariffs on raw materials, and antiquated organized labor agreements...
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