What is outsourcing Do you think American companies should b

What is outsourcing? Do you think American companies should be allowed to outsource?

Solution

Outsourcing means transferring some of the non-essential jobs of the company to an offshore location to reduce the cost and task burden on the company. For example, the non-essential job like service centers is located in Philipines for the US companies.

Outsourcing help the companies cut cost and make their functioning more efficient because now they have to focus more on the core functions. It also reduces the operating cost of the companies because they usually shift the jobs to a cheaper location.

Yes, American companies should be allowed to outsource because it reduces the cost of services provided to the consumer and increase the consumption and consumer surplus in the economy.