How would USA cope with the current outsourcing trend? What would be the scenario in 5 years?

Answer 1

Well, China is still dumping a lot of finished goods on this country, driving many staple businesses out of business because they cannot compete with her cheap labor force. Industries such as steel and automobiles are irreplaceable, and when time comes for a war (when we need them the most), we will not have them ready to go.

I don't know how we'll deal with it.

Answer 2

Outsourcing is a net transference of wealth from First World Countries to the Third World.

The first 20-30 years will be painful, but it is inevitable. A world where 10% of the people hold 90% of the wealth is a world ready to explode.

Yes, the standards of life in the First World won't be as good as they used to be, but that's a price that must be paid. Not all the world can live at the USA-in-the-50s standards; we all will have to settle for something between that and Eyhiopia-in-the-80s.

Answer 3

only positive...union thugs have priced the labor market out of reality in the seventies and the trend looks postiive for skilled workers being employed at a reasonable wages. Locally here in Ohio delphi workers were offered buyouts around the hundred thousand dollar level effectively to just leave. We all got a good laugh that some couldnt figure out whether to take it or not. You give me a hundred grand I can take care of myself quite efficiently thanks. The overal summary here is businesses cant survive if people think making twenty dollars an hour plus for menial labor is reasonable. John Foster Dulles put it best. The business of america is business.

Answer 4

Outsourcing will only do more good than harm. They are usually jobs that are too difficult to staff in the United States, for one reason or another. And they benefit the host country enormously. I do not think that anyone here misses too greatly the telephone support jobs in credit agencies that have moved to India or Indonesia. Our emphasis is on higher paying positions that require degrees. Menial labor will not be a huge loss in five years or fifteen years.

Answer 5

Good question. The US Congress will be addressing this issue and consider policy changes and tax relief to keep the business here. It's a tough buy since lower prices drives the market. The big push is to get the import/export in line.

Answer 6

US has no othergo. Its economy is in very bad shape. It can not meet its requirements from within their state. As outsourcing is cost-effective, it need very much for its survival.. US or any other developed nation enjoying wealth by exploiting the developing nations.