Offshore Outsourcing, an Opportunity Rather Than a Threat

It is the purpose of this paper to evaluate the causes and consequences of offshore outsourcing of manufactured products and services to developing countries. Outsourcing is just a new way of doing international trade leading to gains from trade and its effects on wages and jobs are not qualitatively different from trade in goods. Offshoring is not the exporting of jobs. It represents the importing of services. It will be argued that the best way to destroy jobs is for the government to try and protect them. The best way to create more jobs is to allow for their destruction