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    0 Replies Latest reply on May 27, 2009 5:19 AM by Cosoft

    What's your opinion on Obama's anti-outsourcing policy?

    Cosoft Newbie


      Recently, President Barack Obama had announced new proposals to end tax breaks for American companies that outsource jobs offshore. These policies aimed at preventing job losses within U.S. But according to Mann (2003) because of offshore outsourcing United State's GDP had experienced an additional growth of $230 billion between 1999 and 2007". Using the IT hardware industry as an example, Mann (2003) expects the offshore outsourcing of business process services to also lower prices to the consumer, making business-specific packages more affordable and leads to higher productivity among U.S. workers. Also, Theory of Comparative Advantage can explain why outsourcing is prevalent now.



      Is offshore outsourcing propelling or draining on the U.S. economy? Is outsourcing the root cause accounting for job losses in America? What's your opinion on offshore outsourcing?



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