INTRODUCTION
Businesses in the United States have developed a new business model predicated on
finding and using the most rewarding benefits provided by developing countries. They
have found that where better-trained workers are performing the same task at a lower
overhead than their US counterparts, and with spiraling benefits costs the trend toward
relocating companies overseas. Reports from Congress have found that relocating has had
a negligible impact on the integrity of U.S. economy. There is no doubt though, that U.S.
firms are increasingly looking at lower-wage countries to build their workforce. The
Bureau of Labor Statistics does not yet keep data on the number of jobs transferred out of
the country, and companies have kept their data hidden on this issue. Little is known about
the number of jobs that have left the U.S. to other countries and in addition, their affect on
the economy.
The economy has seen many affects because of globalization and the relocating of jobs.
Historically, the U.S. has had a manufacturing influenced economy and then a focus on
service related jobs. However, globalization has allowed companies to find new regions
where the same work is done with less costs. This encourages firms to outsource the
low-skill jobs to overseas markets. Company executives believe they will save money by
substituting high-skill, low-cost foreign labor for American workers. The economical
liberalization of China, India, and the former Soviet Union satellite nations has added
billions of new skilled workers. But the more important factor, one that is overlooked by
most observers, is the fate of U.S. workers no longer plays a role in corporate
decision-making. If there is no cost to destroying U.S. jobs, then companies will seek to
lessen their labor costs, spurring transfer of high-skill, high-wage jobs. Company
executives are acting rationally, trying to increase profits for their companies, and we pass
no normative judgment about this. On the other hand, workers fearing their jobs will be
outsourced are also acting rationally when they express concern about it. They know that if
they are fired, the likelihood that they can find a job with a similar pay is low.
RELOCATING INDUSTRIES OVERSEAS
There is a growing concern among American workers the economy is being hollowed-out
by a new form of Relocating overseas. American firms have begun to employ foreign
workers or subcontractors for a wider variety of Businesses and service jobs. This article
does not intend to deal with whether American companies sending jobs overseas is good
