Law, Business and Society 11th Edition by Tony McAdams

Exercise 41

Increasingly, U.S. corporations are farming out programming, customer support, data entry, and various back-office jobs to lower-paid workers in countries as diverse as India, Romania, and Ghana. The average programmer commands $60 an hour in the United States, six times the rate in India. In a research report in mid-2003, Gartner Inc. predicted that at least 1 out of 10 technology jobs in the United States would move overseas by the end of 2004. Forrester Research predicts at least 3.3 million white-collar jobs and $136 billion in wages will shift from the United States to low-cost countries by 2015.
a. Is outsourcing good for America Explain.
b. Are you confident that you will be competitive in the American market of the future where outsourcing seems destined to strip away big pieces of the job market Explain. See Associated Press, "Corporations Explore New Ways to Ship Jobs Overseas," Waterloo/Cedar Falls Courier, January 22, 2004, p. D6.