Why Money Chases Cheap Labor Assignment Example | Topics and Well Written Essays - 500 words

Why Money Chases Cheap Labor - Assignment Example According to Di Stefano, â€Å"capital, the resource that fuels our industries, has to seek the lowest labor costs in order for companies to survive† (â€Å"Why Money Chases Cheap Labor,† Lower Costs sect.). The second part of the article takes the reader to the loci of cheap labor. While America’s own cheap labor was situated in the southern states, Asian countries, such as Japan, Taiwan, South Korea, China, and India, were picking up slowly in the cheap labor market (Di Stefano, â€Å"Why Money Chases Cheap Labor â€Å"). The third and last section of the article stimulates the future of American firms and employment with its section titled as â€Å"Where Are We Headed?† The writer then answers his own question by pointing out that while â€Å"America obviously cannot compete effectively with the labor costs of developing nations,† competition then lies to America’s technology and science sectors (Di Stefano, â€Å"Why Money Chases Cheap Labor†). International Business Issues Outsourcing is considered an international business issue. In fact, its impacts are subject to steamy debates and multi-perspective arguments, which inevitably make it a sensitive issue for the host and headquartered country. Outsourcing sensitivity lies on the border of the gain on the host country and the consequent loss in the headquartered country.