Some people believe that outsourcing jobs to lower wage coun

Some people believe that outsourcing jobs to lower wage countries will benefit the U.S. economy in the long run because the price of the goods will be lower. Do you agree with this belief? Why or why not? The question needs to be 250 words or more.

Solution

Outsourcing of jobs to lower wage countries refers to the tendency among many firms situated in developed countries like USA, UK etc to send both knowledge-based and manufacturing work to firms owned by such firms (subsidiary) or third-party firms in other developing nations like India, China, Taiwan to name a few. This is being done with a view to take advantage of lower wages and operating costs existing in such countries. I believe that American consumers, workers and businesses will benefit from outsourcing in the long run. The main advantages of outsourcing as I see are as below:

Labor costs in the outsource destination are also on the rise and together with rising fuel prices, shipping costs etc. the main reason for sending jobs overseas is fast diminishing and we may see a reverse flow of jobs back to America.