Outsourcing of skilled white-collar jobs to developing countries mostly benefit developing nations. Companies in developing nations can outsource white-collar jobs at lower prices. It helps the developing nations because the cost of labor reduced, which in turn reduces the cost of production for the companies. The companies can, therefore, offer quality goods at affordable prices, which increases competitive advantage. Increased profits also increase competitive advantage in the global market. The looser is developed countries where white-collar jobs are being transferred. It is because people in developed countries lose opportunities to get jobs. The effects of reduced employment also adversely affect the economy of the developing country. Lack of adequate jobs for people in developed countries results in increased levels of poverty.
Yes, developed nations like the United States will suffer the loss of high-skilled and high-paying jobs. The reason is that developed nations move the white-collar knowledge base because of the cheap cost of production. The transfer of skilled and expert employees to developing countries means the United States is left with limited and unskilled labor. It will, in turn, affect the countries productivity because the work left in the state is not as effective. Companies who would otherwise perform better with knowledgeable, skilled, and highly trained employees have reduced productivity. Reduced productivity will lead to the closure of many companies, exacerbating the adverse effects of reduced unemployment, which would, in turn, increase poverty levels. Moving white-collar jobs means that jobs in the United States remain low paying, and people have to take them because they need to feed their families. Even when employees have higher education and experience, the only jobs available are low paying.
Yes, there is a vast difference between the transference of high-paying white-collar jobs and low-paying blue-collar jobs to developing nations. Transfer of blue-collar jobs has limited economic effects because the developed country focuses on creating well-paying jobs for its citizens. Access to white-collar employment with adequate pay raises the standards of living of people in the developed country. Citizens can afford healthcare, food, housing, and cater for emergencies because they have adequate finances. The absence of blue-collar jobs makes people committed to acquiring education and expertise in different professions, such as accounting, engineering, programming, and many others. The job environment becomes highly competitive, and employees have higher productivity. Companies are therefore advantaged because employees have increased productivity, and time is not wasted on training. It would, in turn, raise the standards of living to reduce poverty rates. The government should stop the flow of white-collar jobs to India to reduce the availability of blue-collar jobs.
Aviation is significant in both international trade and a nation’s development. It influences economic growth through the provision of employment and GDP contributions. The government, therefore, ensures that the aviation industry continues to exist through the provision of subsidies. Subsidies have been a part of aviation for a long time and have resulted in many controversies. Aircraft manufacturer plays a vital role in aviation. Aircraft manufacturing is a high-tech industry that requires a lot of resources. It requires expertise in the development and production of aircraft assembly. Employees in this sector must, therefore, exercise high-level performance, efficiency, and safety. The manufacture of airplanes is done in a large integrated plant. It requires advanced technology and highly trained engineers. Subsidies in aircraft manufacture are, therefore, substantial because they help reduce expenditures and generate additional revenues (Gössling et al., 2017, p. 5). Subsidies help manufacturers to incur low production costs hence reduced the cost of aircraft to airlines. Subsidies also influence the decision of manufacturers in cases where they want to bail out on specific projects. Grants help aircraft manufacturers to incur losses comfortably because they have adequate finances from the government. Grants in terms of tax reduction help the manufacturers to acquire equipment and labor at considerable prices.
Airbus received 100 percent of the funds in the form of loans below-market interest rates from the countries it operated in, including Germany, France, Spain, and the United Kingdom. The funds were for the development of a new aircraft for the four countries (back, n.d., p. 1). Airbus claimed to accept the grants because Boeing has, for the longest time, been taking donations for research and development from NASA and the USA defense. There is a time when grants should be considered acceptable, especially when the organization receiving the award has an adequate reason. The airbus received 100 percent funds for the manufacture of a new aircraft that would economically boo the countries. Grants should as well not be accepted when they have hidden costs.
Washington state awarded the Boeing Co. a tax exemption of $8.7-billion. The reason for the massive exception was to encourage Boeing to maintain growth. It would be beneficial for Washington state because growth would lead to an increase in the provision of employment and revenue. However, this was not the case as Boeing cut more than 12,655 jobs in Washington. When providing the tax subsidies again, the government should ensure legal agreements.