Using the concepts of absolute and comparative advantage answer the questions: 2

Question

Using the concepts of absolute and comparative advantage answer the questions: 250 words

1) In your opinion, has the U.S. outsourced too much? Explain why you believe that the U.S. has or has not outsourced too much keeping in mind the reasons why corporations outsource, and the benefits derived from this strategy.

*****Please review the following resources when forming your opinion; you are free to do as much research as you want however your opinion should be based on data and not assumptions! For example, just because your cousin lost his job because it was sent overseas doesn’t necessarily mean that there was an overall negative economic impact!

-Economics of Outsourcing Policy http://www.plu.edu/~econ331/home.html The Case for Outsourcing Jobs http://money.cnn.com/2012/09/14/news/economy/outsourcing-jobs/index.html

- Outsourcing for Dummies (and the Willfully Ignorant) http://www.forbes.com/sites/danikenson/2012/07/11/outsourcing-for-dummies-including-the-willfully-ignorant/#39516eaa6821 US Manufacturers

- Have Three Million Available Jobs To Fill http://www.infowars.com/us-manufacturers-have-three-million-available-jobs-to-fill/

- U.S. Trade: Exports and Imports Decline Sharply in January 2009 http://www.calculatedriskblog.com/2009/03/us-trade-exports-and-imports-decline.html

***Please take a look at how import and exports mirror each other****

Explanation / Answer

United States certainly outsourced too many middle level jobs to far away shores, This was done by corporations to maximize their profits,

The reality of this entire outsourcing episode is very different, Corporations cannot survive without exporting bulk of their work to overseas, There are instances where the entire corporation is being sold off to foreign buyers because such sort of operation would not survive in America, IBM sale of manufacturing business to Lennovo is best example.

But there is a good thing to outsourcing, If you are looking for a job that is on very top of the value chain, The job still is in the United States, Key departments like design, architecture and core finance etc still is exclusively in America. We are left with jobs that are very high skilled and normal american is very unlikely to fit in these positions.

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