Im writing a causal analysis paper on this issue and I need some more effects and any alternative view on this issue(argumentative) If you could help i would appreciate it. (I really need serious answers) Thank you =)|||Reduction in total overall costs. In addition, it frees local production resources to be used in those areas where the country has a relative (comparative) advantage.
There is no "country" boudaries in economics. These boundaries are mainly political. A lawywer may be able to type a letter efficiently and effectivelly. But investing his time on this distract him from performing even more profitable work. It is to his/her advantage to "outsource" certain clerical tasks to another person (and let him/her get some revenue for this), and to concentrate his production in lawyer "stuff".
Social/Political entities, "Countries", have the same situation. Even when one country could be qualified to produce it all, it may be better to concentrate production on the most profitable areas, outsourceng the rest. The country supplying the outsourced product/services profits mainly because it allows the outsourcing country to better concentrate and specialize in profitable production.
Keep in mind, it is not countries that actually trade. Most of the time trade take place between commercial entities that happen to be "legally" anchored to a political/legal region. So, really this outsourcing really represents an economic supply of product/services to a company anchored here in the US. Perhaps this increases unemployment temporarily here in the US. But, many of these persons will later be absorved into more profitable prodction areas of the local economy (which does not mean employees will eran more, only that the company will make better profits).|||Heres your casual answer....... Higher unemployment!
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