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Conclusion

I set out, through this series of papers, to analyze the global dispersal of manufacturing as

it pertains to the United States. When talking about dispersal of manufacturing, I was actually
referring to the subcontracting of certain components of business out to other companiesi. As I
looked at the various ways a business could disperse its manufacturing, I mainly focused on the
dispersal done by big businesses, otherwise known as TNCs. These TNCs based in the United
States that I am referring to are those such as Apple, or large retailers like Walmartii. Virtually all
TNCs in the United States (as well as other, smaller businesses) subcontract at least some part of
their work out to export-processing zones in other countries.
In order to understand how important the dispersal of global manufacturing is to the
United States economy, it is pertinent to recognize that the US is the second largest importer of
goods in the worldiii. Spending on imported goods continually rises in the United States, and as
TNCs grow larger, this spending will likely increaseiv. Consumerism is a large part of the US
economy, and consumer goods already comprise twenty-six percent of all imported goodsv.
Combine this with capital goods and industrial supplies, and it doesnt look like the rate at which
the US imports will slow anytime soonvi. It is easy to see that the dispersal of manufacturing
plays a large part in the reason why the US is such a large contributor to importing; the US economy is essentially intertwined with dispersal now.
In my next paper, I took a closer look at the history of the global dispersal of manufacturing in the United States, in order to figure out its importance today. I was a bit surprised to find
that using other companies to manufacture some part for your business has been recorded as far
back as the 1800svii. However, dispersal of manufacturing didnt actually take off in the United

States until the 1970sviii. It was then that computer technology was getting increasingly better,
and it became possible for companies better access to outside resources. The bettering of technology through the next decade allowed for subcontracting to catch on even more, as companies
now felt secure to participateix.
Through all of the papers in my blog, I set out to look at primarily the United States and
how it has been affected through this new age of business. However, I wanted to get a look at
what was happening on the other side of world. It is easy to forget that although the goods we
import are made to be less costly for us, they are often produced at a very high price to the workers that make them. This is why I chose to take a look at one of the factories that TNCs such as
Apple are using to produce their goods; I specifically wanted to look at Foxconn. Through the
analyzation of these factories, I came to realize that although the US economy is dependent on
dispersal of the manufacturing, many other countries are as well. Very often, export-processing
zone workers are put at risk for our consumeristic economy.
Finally, in a more direct approach to answering the question of the effect of manufacturing on the United States, I took a look at the benefits and negatives for various aspects of the
economy. Initially, I thought that the case for whether or not it was actually good for the United
States would be open and closed. However, the answer is not as simple as it might otherwise
seem. For companies, it is obvious that there are great benefits to subcontracting. When it comes
to employment, the answer is not so clear. In the 1990s, the United States was adding two jobs
back home for every one job it sent overseasx. Now, however, it seems that we may be suffering
some job losses partly due to dispersalxi. As far as the standard of living, it is arguable that it has
gone either up or down depending on which class of wealth is being consideredxii. Although it is

not indefinitely clear whether or not the global dispersal of manufacturing is completely beneficial, it is clear that its now intertwined with the US economy.

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Endnotes
i"Outsourcing."

Business Dictionary. WebFinance, Inc. Web. 13 Mar. 2015. <http://www.businessdictionary.com/definition/outsourcing.html>.

iiFarfan,

Barbara. "2014 Top 100 Largest US Based Retail Companies on World's Largest List."
About Money. About.com. Web. 14 Mar. 2015. <http://retailindustry.about.com/od/usretailcompaniesb/fl/2014-All-Worldrsquos-Largest-US-Retail-Chains-Biggest-American-Retailers_2.htm>.
iii"United

States Imports." Trading Economics. Trading Economics. Web. 12 Mar. 2015. <http://
www.tradingeconomics.com/united-states/imports>.
iv

United States Imports.

United States Imports.

vi

United States Imports.

viiCantoria,

Ciel. "History of Outsourcing." Bright Hub. Brighthub.com, 20 May 2011. Web. 16

Mar. 2015. <http://www.brighthub.com/office/human-resources/articles/100143.aspx>.
viii
ix

Cantoria

Cantoria

xPearlstein,

Steven. "Outsourcing: What's the True Impact?" The Washington Post. Washington
Post, 1 July 2012. Web. 6 Mar. 2015. <http://www.washingtonpost.com/business/economy/outsourcings-net-effect-on-us-jobs-still-an-open-ended-question/2012/07/01/gJQAs1szGW_story.html>.
xi

Pearlstein

xii"How

Does Outsourcing Affect the US Economy?" Wisegeek. Conjecture Corporation. Web. 5

Mar. 2015. <http://www.wisegeek.com/how-does-outsourcing-affect-the-us-economy.htm#comments>.