... is just one aspect of the ongoing economic globalization which, all of the hand-waving, teeth-gnashing and wailing notwithstanding, is going to continue to our overall benefit. Furthermore, most of the complaints about the "outsourcing of American jobs" are just flat wrong for a number of reasons, not the least of which is that it is a two way street.

For an interesting discussion of the subject, see the article linked below. ----- jim o\-S

To whet your appetite, here are some highlights:

Outsourcing in Reverse:
Foreign Companies Send Jobs to the United States
Not all outsourcing activity is a net loss for American workers
by Stephen Swoyer
10/26/2004

Not all outsourcing activity is a net loss for American workers. A new report argues that job losses from outsourcing are to some extent counterbalanced by another phenomenon, known as insourcing, in which foreign companies send jobs to the United States.

“What has been almost entirely absent from this discussion about outsourcing is the converse dimension of globalization. This process is called ‘insourcing,’ i.e., the expansion into the United States by foreign-headquartered multinational firms,” he writes. “Yes, these companies have created jobs, but that is just the start of the story. More than just creating jobs, these subsidiaries have contributed to rising U.S. living standards both through their own operations and through their interactions with other domestic U.S. firms.”

Even so, most folks will focus on insourcing’s role as an engine for job creation. In this respect, Slaughter says, they won’t be disappointed. “Over the past generation the number of U.S. jobs at these subsidiaries has more than doubled,” Slaughter writes, noting that insourcing companies also contribute to U.S. economic growth by spurring investments in research and development, physical capital, and international trade. Insourcing companies also pay better than their domestic competitors, Slaughter found.

Still, Slaughter cites several statistics that highlight the importance of insourcing. For example, U.S. subsidiaries of foreign companies employ more than 5.4 million U.S. workers—roughly five percent of overall private-sector employment. That’s an increase from three percent in 1987.

As for research and development, insourcing companies now account for a sizeable share—nearly 15 percent, or $27.5 billion—of private-sector R&D activity in the U.S. That’s up from just nine percent in 1992. Similarly, U.S. subsidiaries of foreign companies accounted for 10 percent ($111.9 billion) of private-sector capital investments in the U.S.—up from eight percent in 1992.

What’s most surprising is that insourcing companies also account for a sizeable share (20 percent, $137 billion) of U.S. exports. It's the same on the payroll front, where subsidiaries of foreign companies paid U.S. workers more than $307 billion in compensation—six percent more than overall U.S. private-sector labor compensation. What’s more, Slaughter notes, the average annual compensation at insourcing companies was $56,667—nearly one-third more than the average annual compensation in the non-subsidiary U.S. private sector. This tally has increased sharply from just 20 percent in 1992.