Difference between revisions of "Offshoring"
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| − | Offshoring is the movement of jobs by businesses | + | '''Offshoring''' is the movement of jobs by businesses to foreign countries where labor rates are cheaper and there are fewer regulations. This is also known as "outsourcing." Many manufacturing jobs move from the United States to foreign countries in this manner. |
== Possible effects of offshoring == | == Possible effects of offshoring == | ||
| − | Key battleground states for the [[2008 Presidential Election]] | + | Key battleground states for the [[2008 Presidential Election]] included Ohio, Pennsylvania and Wisconsin. |
Ohio lost 31,800 jobs in goods-producing industries between January 2006 and January 2007, including a loss of 21,900 jobs in manufacturing.<ref>http://jfs.ohio.gov/releases/unemp/200702/UnempPressRelease.asp</ref> | Ohio lost 31,800 jobs in goods-producing industries between January 2006 and January 2007, including a loss of 21,900 jobs in manufacturing.<ref>http://jfs.ohio.gov/releases/unemp/200702/UnempPressRelease.asp</ref> | ||
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All three states punished Republican candidates in the November 2006 elections. | All three states punished Republican candidates in the November 2006 elections. | ||
| − | == | + | == Experiences of Europe == |
| − | Thanks to a large number of | + | Thanks to a large number of offshoring projects Europe has experienced a change in its entire economy: manufacturing has been largely moved to Asia, but this has steadily been replaced by what is called "the knowledge-based economy". Anti-offshoring groups have hailed this as a catastrophe, but this has not been borne out by unemployment figures or GDP calculations. |
| − | It is important to note that there has been a strong backlash to this | + | It is important to note that there has been a strong backlash to this offshoring within the UK. Some British companies, including National Westminster Bank, RBS, the insurance firm Norwich Union, Aviva (repatriating 150 out of 7000 jobs) and Powergen have reversed their decision to outsource labor. |
[http://www.bcs.org/server.php?show=ConWebDoc.3960 BCS Site on Off shoring opportunities] | [http://www.bcs.org/server.php?show=ConWebDoc.3960 BCS Site on Off shoring opportunities] | ||
Revision as of 19:15, January 2, 2010
Offshoring is the movement of jobs by businesses to foreign countries where labor rates are cheaper and there are fewer regulations. This is also known as "outsourcing." Many manufacturing jobs move from the United States to foreign countries in this manner.
Possible effects of offshoring
Key battleground states for the 2008 Presidential Election included Ohio, Pennsylvania and Wisconsin.
Ohio lost 31,800 jobs in goods-producing industries between January 2006 and January 2007, including a loss of 21,900 jobs in manufacturing.[1]
Pennsylvania lost 200,000 manufacturing jobs between July 2000 and March 2007.[2]
Wisconsin lost 8,600 manufacturing jobs in the last year (Feb. 2006 to Feb. 2007).[3]
All three states punished Republican candidates in the November 2006 elections.
Experiences of Europe
Thanks to a large number of offshoring projects Europe has experienced a change in its entire economy: manufacturing has been largely moved to Asia, but this has steadily been replaced by what is called "the knowledge-based economy". Anti-offshoring groups have hailed this as a catastrophe, but this has not been borne out by unemployment figures or GDP calculations.
It is important to note that there has been a strong backlash to this offshoring within the UK. Some British companies, including National Westminster Bank, RBS, the insurance firm Norwich Union, Aviva (repatriating 150 out of 7000 jobs) and Powergen have reversed their decision to outsource labor.
BCS Site on Off shoring opportunities
Pro Off-shoring site read with reservations
Analysis of a trend of reversing off shoring