Outsource, a method that big companies in developed countries lower their production cost and operation cost. Nowadays in developed countries, many multinational corporations outsource low skill jobs to developing countries offshore, United States as the most powerful country is not exceptional. It all started in 2000s, after entering the WTO in 2001, the trade with China has caused the loss of millions of jobs in the US. Companies built factories in China and moved their low skill jobs, hundreds of factories were closed down millions of people lost their jobs. This movement clearly enriched the chairman of large corporations, but decrease the americans average annual earning throughout the nation. While most americans hold the opinion that outsourcing hurts US economy, some economists argue that outsource actually …show more content…
It can be a good thing because it lower the commodity price so americans can live in higher standard life. It can also be a bad thing because large amount of jobs have been transferred to foreign countries. (Moreland)
Outsourcing can benefits U.S economy is ways, cut off low skill jobs and train more high skilled personnel; create jobs by attract foreign investment build technology development center in U.S; improves Americans living standard; help massive corporation cut down manufacture cost and operation cost in order to focus on technology development. First, jobs that are offshore to other countries are low skilled jobs, which means the demand for low skilled personnel is decreased. Hence, the manufacture and basic service market is already saturated, the competition and low wages for this kind of jobs make people going back to college to be trained as high skilled personnel; the increasing of high skilled personnel can create more technology based companies which create more jobs. Second, outsourcing also brought insourcing to U.S, “according to the Commerce Department, more than 6 million Americans work for