Outsourcing Factory Work

 

http://www.cbsnews.com/news/worker-carrier-moving-jobs-to-mexico-is-symbol-of-corporate-greed/

An Idiana factory which make furnaces plans to move production to Monterrey, Mexico. This will end 1,400 jobs in Indianna, and will lower labor costs for the company. The current employees earn $34 an hour plus benefits, whereas the new workers will only earn $6 an hour with benefits. This seems like the same old outsourcing story that has been going on for years. The presidential candidates have been using this instance to talk about their potential policies. For instance, Hillary Clinton has said that if she becomes president, she will create laws that incentivize companies like Carrier to value their employees more. Donald Trump simply stated that if he were to win, he would make sure that Carrier did not outsource their factory work to Mexico.

In a globalizing economy, multinational corporations can move from country to country to take advantage of lower labor prices. This also allows them to dodge unfavorable laws that might cut into profit. Practices like this, and American voters’ opinions on such dealings could very well have an impact on how they choose to cast their ballots. Thus, international events and policies play a role in domestic decisions. It will be interesting to see how candidates would end up actually grappling with these issues once he or she becomes president, and whether or not their actual actions match the promises they made in campaigns.