2.  In the debates leading up to the previously
held Presidential election, the issue of off
shoring of US jobs was a major topic discuss by
both running candidates. So in seeing this I
wanted to learn more on the topic thus learning
why each candidate were so concerned with
this issue.

3.  According to Plunkett et al. (2012) “Offshoring
refers to the tendency among many
U.S., Japanese and Western European firms to
send both knowledge-based and
manufacturing work to third-party firms in
other nations. Often, the intent is to take
advantage of lower wages and operating costs
in such nations as China, India, Hungary, the
Philippines and Romania.”

4.  To take advantage of low wage rates and
production cost.
 To gain use of experts knowledge and
education.
 To gain access to International Markets

5.  Low cost in wages and operation.
 Greater flexibility in reallocating capital.
 Increase productivity.
 provide opportunities for firms to become
familiar with cultures and consumption
patterns of people in other countries.
 enhance the quality of products and improve
competitiveness due to availability of
specialized talents in other countries.

6.  Loss of US Jobs thus increasing unemployment
rate
 downward pressures on American wages
 discouraged workers may become a financial
burden on society.
 Client country may lose their economic
advantage since the secret of their success
sometimes have to be shared.

7. In regards to the American economy offshoring
seems to have impacted the economy both
positively and negatively. A study in the
Mckinsey Quarterly found that the US gain
from IT ofshoring in 3 ways:
 Cost savings, which create additional value in
the US economy
 New revenues from firms buying new
equipment from American companies.
 Repatriated Earnings

8. Offsshoring has its positive effect but it seems the
government is more concern about the negative
effects. These effects include
 Increase in the US unemployment Rate
 Cheating of the tax system by offshoring
Companies

9.  Microsoft is one of the key company that practice
offshoring. Microsoft has partner with many Indian
companies such as HCL technologies and Satyam
computer services. The goals of Microsoft was to
develop service offerings, improve marketing
strategies and widened their customer base. However
by doing this microsoft has Cheat the U.S tax system.
The article offshore tax avoidance gimmicks must
end. (2012). States that, Microsoft used a process called
"transfer pricing," to shift $8 billion in income from
products developed here in the United States to
subsidiaries based in Singapore and Ireland.

10.  The Government should create a tax policy that
tax companies as they go offshore.
 Implementing Serious Penalties such as fines
for company who cheat the Tax system.
 Companies should dedicate part of the profit
they earn for retraining of workers they laid
off.

11.  Offshoring seems to be a major problem for the
US. Efforts to stop offshoring have been futile
since it contribute greatly to the U.S people.
The U.S people are able to get good quality
goods and services at low prices because of
offshoring. However Offshoring overtime has
become less advantageous since wages and
operating cost have been rising significantly in
the major countries which companies offshore
to, which are China and India.