If it's cheaper to out source it American companies will. Interestingly they do this to recycle paper because its really toxic to do so. Never understood why, pine trees are a fairly renewable resource. In Georgia we have plenty of pine trees that grow pretty fast and a forest can be replanted fairly easily.
Americans simply use too much paper...
I seldomly see paper wrapped straws or more than one roll of toilet paper per cell in any other countries I've been to. Even mcdonald in other country don't use that much paper as we do here.
Right, but I think using paper instead of plastic wrappers is more environmentally friendly. Plastic is made from byproducts of oil refining. Its really nasty stuff that doesnt biodegrade as easy as paper. Paper is renewable and it also helps the environment by taking out CO2 (trees).
Fun fact, Ted's Montana Grill actually uses paper straws as a conservation effort IIRC. They can get soggy but it is something unique I haven't seen before.
Also wrapping straws in something is a health code issue. Some places even in the US do no require it to be done.
So it's not wrapped at all. Regarding the health issue you mentioned, if people don't mind drinking from glass in a restaurant, why do they mind drinking from unwrapped straws? I believe unwrapped straws in a container is at least as clean as glass from any bar.