progressing faster than America and Europe. The economic
scenario in the US is forcing the Americanpolicy makers to alter
their policies in favor of their local economy. Heavy taxations
have been levied onoutsourcing of projects to India. This is one of
the reasons why United States government has gone
ahead and changed their entire policy towards taxation.
There are several implications of a heavy taxation policy on
outsourcing. Outsourcing is a boon for manycountries but it is a
bane for other countries. The European Union and the United States
fall under thecategory of countries for whom outsourcing is a bane.
They want to retain their jobs in their owncountry. They are facing
job shortages and their unemployment rate is rising at the same
time. This is
the reason the US administration is getting panicky regarding
the whole issue of outsourcing.
There are many aspects of globalization. It has resulted in
widespread development of businessesoverseas; yet it has created
several problems for the US economy. Many of the manufacturing
units of USA have shifted to many Asian countries. The
manufacturing units have largely shifted to the Chinesemarkets. It
has resulted in several job losses. In order to counter these job
losses, the US government isshifting its policies in order to
prevent further damage to the economy. The American
administrationhas been successful in retaining several jobs in the
country itself. Heavy taxation can force many
