8Higher wages can be a problem
While on the outset, President Trump’s executive order making it mandatory for companies to pay overseas workers higher wages is bound to impact the wage metric across the board, seeking to revise up the current wage indexes for all categories, nevertheless it should be pointed out that this would only serve to undermine US companies and their competitiveness.
To put it succinctly, companies can ill afford to cut or downsize their profit margin and moreover, cannot afford to lose out on valuable talent. As it is, companies have already started taking measures to ensure that they are able to source the best form widely available talent for their companies by outsourcing whole departments overseas. While smaller and mid-sized companies would have no chance but to play ball with Trump’s latest executive order, the larger ones have more funds and can easily outsource and even set up smaller base of operations overseas.