Document Type
Article
Abstract
The United States has experienced an increase in the offshore outsourcing (offshoring) of jobs in the service industry. Although offshoring is common in the manufacturing industry, it only recently began in the service industry. The recent increase in the service industry has occurred because of new technology and the ability to access information from anywhere. Those who oppose offshoring believe it takes away American jobs, lowers wages, causes a decline in America’s standard of living, and any benefits from offshoring are unevenly distributed. Statistics on unemployment rates, mass layoffs, the trade deficit, GDP, and wage rates are analyzed to show that overall, offshoring in the service industry has not negatively affected the United States. Currently, offshore outsourcing in the service industry has a net benefit to society and there is no reason for concern.
Publication Date
Spring 2006
Journal Title
Major Themes in Economics
Volume
8
Issue
1
First Page
11
Last Page
25
Copyright
©2006 by Major Themes in Economics
Creative Commons License
This work is licensed under a Creative Commons Attribution-NonCommercial-No Derivative Works 4.0 International License.
Language
en
File Format
application/pdf
Recommended Citation
VanderWeerdt, Gwynn
(2006)
"Analyzing the Debate over Offshore Outsourcing in the Service Industry: Is there a Reason for Concern?,"
Major Themes in Economics, 8, 11-25.
Available at:
https://scholarworks.uni.edu/mtie/vol8/iss1/4