Question

Do you believe the long term potential damage to the US economy in terms of innovation and expertise is offset by the apparent gains in productivity due to offshoring?

Answer 1

Offshoring

It is the relocation of a business process from one country to another genrally these business process are operational in nature such as manufacturing, or supporting processes, such as accounting. As musch as advantage offshoring provides benifit to the country it may also do harm to the country. All the major business who has the fnancial provice to enter the markets of the foreign country for the cost savings moves their operations to the foreign country. For example major chunk of assembling of the Apple phones takes place in China , as China has cheap labour and rawmaterial and the labour is equally skilled that benifits the company. But as offsoring says mainly operational process are transfered to the other country.

Despite operational activities transferred to the foreign country the reasearch and development majorly takes place in USA which is responsible for the innovation and expertise of the people. Offshoring is not a threat to the innovation and draining of the expertise from the US economy and operational activities does not affect innovation and expertise of the people.