How is the growing use of outsourcing affecting the labor market in the United States? How is it affecting the supply of and demand for US workers? What is the implication for the marginal product of labor and wage rates? What steps can be done to improve the competitiveness of US workers versus workers in other countries?
2007-03-20 16:03:09 · 2 answers · asked by Anonymous in Social Science ➔ Economics
1. lower the value of US workers
2. increasing supply decreasing demand
3. decreases wage rates
4. import workers from other countries, increase trade barriers.
2007-03-20 16:07:47 · answer #1 · answered by Santa Barbara 7 · 0⤊ 0⤋
~Outsourcing can be very effective at lowering cost and improve efficiency, thereby creating labor market flexibility.
There are risks. Mainly aspects of oversight, quality control, and intellectual property.
~The positive aspects of outsourcing ultimately are positive with regards to supply and demand. When products/services can be better produced elsewhere, thats where they'll go.
~This is a link that discusses marginal value product.
It can ge a bit complex.
http://www.mises.org/journals/rae/pdf/rae4_1_7.pdf
~Dont prohibit outsourcing. This is a good way to insure competition.
2007-03-21 01:09:39 · answer #2 · answered by JL 2 · 0⤊ 0⤋