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by doing so firms can free up capital funds and limited time to focus on core business activities. Ancillary jobs can be performed by contacted firms or individuals. Firms especially in manufacturing are able to access latest production technologies and equipment without purchasing or maintaining them. Good outsourcing relationship presents firms with unmatched opportunities to access a network of business partners. For example, electronic assembling firms in China partner with more than two electronic manufactures, firms sharing one assembler can benefit from the supply chain such as sourcing from a chip maker or glass display maker.

消极影响——Negative Effects

The United States has a comparative advantage in industries that require highly skilled labor and capital investment. The highly skilled workforce with a strong knowledge base gives the U.S edge in the global economy. No other country has a high turnover rate of business startups as compared with the U.S. Corporations by shifting some of these jobs overseas to benefit from reduced costs distribute knowledge and facilitate spillovers. Economies such as India or China, receive spillover benefits from influx of knowledge enabling them to advance their economies. A direct result is that competitiveness of U.S technology is placed at risk as its competitive edge advantage is lost from the U.S control (Mascarenhas 53). Additionally, the U.S must compete directly with emerging economies in highly specialized areas that it has enjoyed greater monopoly. Aerospace manufactures that now outsource subassemblies are at risk in the long term of creating competitors. These partners now building components may one day build whole jets largely due to technology, trainings and contacts provided by U.S firms. U.S aerospace firms do not have guarantees that their intellectual properties shall be protected.

Manufacturing is vital to a nation, it fosters a strong domestic economy, generates employment sustaining family wages and salaries, resulting in decent standard of living for the working class. Manufacturing firms large and small are bastions of state and local economies, supplying jobs and tax revenues to finance essential public services. Manufacturing creates economic activity spillovers in other sectors that supply intermediate goods and services. It also stimulates creation of numerous high-end job services such engineers and programmers in software technology within local economies. Additionally it drives economic productivity, innovation and engine of overall economic growth.

Manufacturing of semiconductors, the basis of modern electronic devices, prominently add value to the U.S economy proving high-value-added production, high-wage jobs, efficiency and productivity gains, and wage growth. Notwithstanding this, the United States is losing capacity and leadership in production of semiconductors. William J. Spencer (Emeritus of International Sematech chair), summarizes the leadership concerns by suggesting that a blend of market forces and foreign policies is creating powerful incentives to reallocate new chip fabrication overseas. If the trend persists, U.S leadership in chip design and manufacturing will erode with unpleasant consequences. Productivity growth will slump down severely impacting the economy spilling over to military security and might. These warnings have been raised by the National Security Agen