Question

Why will unions generally condemn outsourcing? What other groups will benefit from it? Why?

Solution

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Companies are mostly hiring firms from the outside for two reasons- either the quality of service isn't good enough in their country or outsourcing is significantly less expensive. Of course, this situation has some consequences. Wages for that part of the industry are going down because of extra competition with cheaper demands and unemployment is increasing. Both things have negative implicants for union goals, but on the other hand, companies are in a position to decrease their costs and at the end, they can sell cheaper products which fit consumers, also.

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