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Mall of America and Outsourcing

Ian Frazier’s article titled “The Mall of America” offers a writer’s story of how he has come to Minnesota several times and has found the Mall of America (MOA) to be very fascinating to him and it surely is. I’m sure most people from Minnesota may take the mall for granted because they have been there and heard about it so many times. I know I am sick of going there and sick of hearing about it even though it is a fascinating place when you stop and think about it. I never really took the time to stop and think about the history behind the mall and how it was originally the beginning of the Twins baseball team. The mall is a symbol of the past as well as a symbol for the future and where our nation is going.

The mall as well as the area around it seems to symbolize the industrialized nation that we are becoming. As Frazier stated in the beginning the Mall covers seventy-eight acres and encloses forty-five of those acres. That is one big mall! The only one larger is the one in Edmonton but the one here in Minnesota will soon surpass that with an addition to the north side. We are becoming obsessed about having more and more products at cheaper prices. Frazier hints to this in the article when he talks about how all of the items in the mall are made in different countries. It is funny to think what someone in a different country would think of some of the things we ask them to produce for us like thousands of tiny plastic loons for the Taste of Minnesota store. This section of the article brought up a few questions to me. He explained that it would be too costly to produce goods in the U.S. Why then are we so obsessed with having so much of a specific good and why are we relying on other countries to produce our goods? An answer to this question is that we simply cannot supply enough products at a cheap enough cost so we need to outsource to other countries such as India and China. Frazier hints to this at the end of the article when he talks about how large the area surrounding the mall is and how the Southdale Mall which opened in 1956 and was the first enclosed shopping mall. Here is pointing out that our obsession with goods and products is increasing as well as the number of people that are living in industrialized cities. People are no longer relying on the family farms as they once were. They are now moving to cities where everything is much more easily acceptable. As a result we must get most of our goods from other countries.

After googling the topic of outsourcing to other countries I have found that it just comes down to the price. In simple terms, it costs less money to produce something in a different country than in the U.S. According to one source, outsource2india.com, companies can possibly cut their operating costs in half by outsourcing. Many companies are also sending their IT programs to other countries, such as India, because they can provide around the clock service at a much cheaper price than the U.S. can. This is due in part to the number of people that they have.

I feel that whether we like it or not, we have not choice but to outsource the production of a lot of our goods because it is much more cost effective. These countries can produce these products at a much cheaper cost than we can here in the U.S. and it makes perfect sense to allow them to make products for us. I also feel that as a result we have become a more industrialized nation because we are able to get more and make more money off of it. This takes people off of farms and puts them near or in the city. It is tough to argue against it because more of the population is centered near and around major cities than in the past. I came across a census brief report from the years 1990-2000 written by Marc Perry and Paul Mackun. According to this report, in the year 2000 nearly 80.4 percent of Americans live in metropolitan areas and the population in these metropolitan areas was up by 14 percent since 1990. This has been caused by our outsourcing of products as well as companies and receiving a much larger profit from these products.

The Mall of America is a symbol of the American economy and how we have grown over the years. We used to rely on a lot of local production but now we are gearing towards importing our goods and services from other countries. The Mall of America has been growing and so has the area around it. It symbolizes the industrialization of a city as well as a nation as people are changing their lifestyles to better fit the needs of our nation.

Comments

Your critical position is very stable in my opinion. Mall of America is a great experience that everyone wants in their life time, but we live about a thirty minute drive so we don’t really see anything special about it anymore. While inflation is rising annually, Americans are spending less to stretch the dollar. American companies are even outsourcing jobs to other countries because labor is much cheaper. Many people, including myself, are against outsourcing jobs, but while we are blabbing away, we don’t realize just how much it cost to pay an American when compare to a Chinese worker. The consumer price index in China is much lower and our dollar is worth 7.44 of their yuan. Americans demand more money because our wants and needs cost more. In the basic economic, if you want profit, you must earn more than you spend. That is why Mall of America contains many items except the United States flag in the mall. Over in America, most students go to college to earn their degree in hope of a better job and especially a better pay. You stated “Many companies are also sending their IT programs to other countries, such as India, because they can provide around the clock service at a much cheaper price than the U.S. can. This is due in part to the number of people that they have.” I do agree, but I just wanted to add one more thing. I believe that China and India have more intelligent, diligent, and ambitious citizens than the United States. Also, they would be paid less too. All of that equals success in any business. For that is why our economy is in a recession too. You then stated “I came across a census brief report from the years 1990-2000 written by Marc Perry and Paul Mackun. According to this report, in the year 2000 nearly 80.4 percent of Americans live in metropolitan areas and the population in these metropolitan areas was up by 14 percent since 1990. This has been caused by our outsourcing of products as well as companies and receiving a much larger profit from these products.” What does the increase of the metropolitan area have to do with outsourcing products and companies receiving much larger profit? When I hear about an increase in the metropolitan area, I would think that there are many jobs available in the area causing it to be increased with hard working people. Maybe I just don’t understand what you are trying to say.

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