Myer doubles its oursourcing from China

SMH.com.au
16/5/2011
http://www.smh.com.au/business/myer-doubles-its-outsourcing-from-china-20110515-1eo8n.html

In Commerce we have learnt that outsourcing can help businesses cut costs but in the long run it may cause backlash from many people who are asking questions at why their jobs are being moved overseas instead of stimulating the Australian economy.

In this case Myer are hoping to increase their profits by outsourcing fashion to China where it has originally been cheap to send jobs there but due to working conditions and concerns of recent times it may increase prices in the stores. This is due to the Chinese economy being stronger than ever and as a result China is being 'Westernised', and their workers are now 'seeing people work 44 hours a week as the sort of mandatory hours, seeing people earn rates that have double and triple time when they work over the 44 hours and have Sunday shifts where they get double and triple time.'.

This can translate to good and bad outcomes for the consumers that may be pleased that there are better working conditions overseas but may also be distressed at seeing prices rise as a result. It may also question outsourcing strategies in the future as companies may now need to seek new countries in which to outsource from, or to stop this practice altogether as it may become difficult to find a good deal in China in the near future.