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?  

Solution

No I do not believe so. If the firms want to lower the cost of production then they should plan strategically. They should enhance technology, process etc. Like Japan, they can adopt many strategies to lower the cost of production. Learn from China and India as well

Outsourcing may affect America as it American citizen will lose their job to the other people. There will be more American living on streets, unemployed.

A country should not play with its citizen just o lower the production cost but they should find another way to lower the cost of production. There should be a law regarding it regulating the numbers of the foreigners working in American firms.

Outsourcing is nearly 50 billion dollar industry. Now think that if it is occupied by the nationals then how much will be beneficial for them.

Outsourcing brings specialization in the business so it should not be completely neglected but there should be a regulation deciding how many professionals from foreign country can work in the organization.

By this way American economy as well as other economies will be in equilibrium.