Question

American firms outsource many jobs to other, lower cost countries. How can this outsourcing actually lead...

American firms outsource many jobs to other, lower cost countries. How can this outsourcing actually lead to increased employment here in the USA?

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Answer #1

The outsourcing to developing countries can help in the reorganization of the American industry. The outsources jobs are mainly manual and low-skill jobs. By outsourcing these jobs to developing countries, American firms can focus on higher end jobs such as data analytics, artificial intelligence, financial services, etc. These new industries related to the data analytics, artificial intelligence, financial services, etc. are growing because America is able to outsource the lower level jobs to developing countries. These new industries are creating jobs.

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