英语论文网

cy and independent institutes.

The semiconductor business demonstrates the problems arising from outsourcing key industrial sectors critical for preservation of critical national security requirements. Natural disasters in South East Asia were chip production is being outsourced; possess a fundamental threat to electronics supply chain. For example the 1999 earthquake measuring 7.6 on the Richter scale that struck Taiwan shut down factories in Hsinchu industrial district disrupting the supply of wafers. Additionally, offshore sourcing and production of chip presents a potential threat to classified information embedded in chip designs. It greatly increases the possibility of unfriendly governments or non-state actors embedding Trojan horses, worms or malware in foreign manufactured chips to be used in military or intelligence applications.

As other nations execute strategic industrial policies to build up their technological capacities and strong, modern manufacturing base, U.S. policies continue to encourage U.S. manufacturers to shift their operations offshore. A comprehensive strategy aimed at reversing the decline in the nation’s manufacturing base will be sufficient for safeguarding and revitalizing the industrial base in the coming decades in face of looming competitive global commerce.

Another long term affect that poses much greater in addition to knowledge spillovers is the lack of local talent available to be utilized in the economy. College enrollment for courses leading to high skilled jobs as suffered a setback due to uncertainties associated with outsourcing of these jobs. In addition, the U.S economy is at risk of losing its attractiveness to skilled immigrants.

Outsourcing disrupts education evident with the college students shunning to pursue high-tech fields and opting for business oriented courses. Students are concerned that by pursuing these course coupled with instability in the labor market they face risks of losing out due to outsourcing. Studies show the proportion of graduates planning to major in computer science or engineering is now 70% below its peak in the early 1980s (Santos 87). With companies shipping IT operations to countries such as India and China, these countries are capitalizing by investing heavily in education and training to continue to attract, retain best talents, and maintain competitive edge in the global IT industry.

The increasing deficit in trade posse’s long term effects on the growth of the U.S economy. The U.S economy consumes more than it produces. This deficit cannot be scaled down if economic activities continue to be exported overseas. Goods and services produced and provided by U.S firms are being imported back to the U.S worsening the deficit situation. Outsourcing also diminishes the purchasing power of workers and shrinks their presence in the consumer market.

Most outsourced jobs to developing countries are not replaceable and present difficulties returning them back. It also means that the few remaining positions, individuals willing to take them must accept wage cuts and reduced benefits that they would have received if these jobs were not outsourced (Bureau of Economic Analysis and Bureau of Labor Statistics). Outsourcing creates a population of underemployed and severely affects the middle class purchasing power.

Employment losses results in lower incomes, degrad