Using the concepts of absolute and comparative advantage, answer the questions:
Why does the U.S. trade goods with other countries that they can produce themselves?
Wouldn't the U.S. be better off producing the goods themselves?
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: 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
Using the concepts of absolute and comparative advantage, answer the questions:
Why does the U.S. trade goods with other countries that they can produce themselves?
Wouldn't the U.S. be better off producing the goods themselves?
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: 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
