Finance, Forex and Investments

Why did American jobs move to India and China?

Can you please mention the Pros and Cons of outsourcing? When I say American Jobs I mean manufacturing and jobs that can be outsourced to India, China and/or other Asian countries. Can you answer these questions also? What is outsourcing? Is outsourcing good or bad for the economy? Who is in favor of outsourcing? Why? Who does not like outsourcing? Why? What are the pros and cons of outsourcing?

Public Comments

1. PROFIT. Call centers based in India have lower salary/benefit costs than those based in U.S. Manufacturing in China using convict labor and recently displaced farmers reduces costs for businesses who charge the inflated prices for products. As far as I know the iPod is not made in China but close by (Indonesia?). S. Jobs makes it for $15 and sells for $200. In the states, salaries/rents/etc would push iPod mfg. cost up to $50-80/unit (less profit).
2. What is outsourcing? Taking aspects of a business and having another company fulfill it. It doesn't always mean its off shore. Is outsourcing good or bad for the economy? Generally speaking it is good because "work" is being done by those who can do it most efficiently in a financial sense. Who is in favor of outsourcing? Why? Any business that can gain efficienies through doing so. Why, generally a company will outsource work to a company who can do it better, cheaper and faster. Who does not like outsourcing? Why? Any one who loses their job as a result. Goverments that lose tax rolls from their population. Organized labor.
3. Americans don't want to pay so much for things... so they get it produced where the cost of labour and materials is much cheaper. The company still makes profits, the Americans don't have to pay as much. If you had to pay an American to make your shoes (considering what minimum wage is in the US) there is no way that you would want to buy them - they'd be too expensive.