U.S. firms have outsourced jobs to China



Provide an overview of outsourcing. What does it entail? Many U.S. firms have outsourced jobs to China (primarily for manufacturing) and India (primarily for back office duties). Pinpoint a firm or firms that have undertaken such outsourcing. What types of jobs were outsourced? What did the workers and or manufacturers offer that drew these firms away from the U.S. labor market? Describe the benefits firms found in outsourcing. Explain the implications of outsourcing for employment and wages in the domestic and foreign labor markets. What are the implications on product prices in the home country when outsourcing is used?

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