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Outsourcing Creates American Jobs Too 10/27/2010

outsourcing globeAn article published on October 12 in the Wall Street Journal reports on the recent whirlwind of events surrounding outsourcing policy development in America. Author William Cohen believes that for every job America outsources, nearly two jobs are created on our own turf; jobs that are pay more and require a higher skill-set, like engineers, scientists and managers. Cohen references studies that have found that when a company expands overseas, they have a higher need to expand management at the American parent company to support their expansion.

The study, published by an economist out of Dartmouth’s Tuck School of Business studied the hiring practices of 2,500 U.S. based multinational companies. He found that when U.S. companies hired lower-cost labor at their foreign subsidiary companies, the U.S. parent companies expanded their teams as well. Meaning that the 2.6 million outsourced jobs helped to create 5.5 million jobs here. And, the jobs created here were often that of management level, created to help support the overseas efforts. Sounds like good news for both countries.

To read the full article please visit:

Wall Street Journal
(sometimes it only gives you a summary, searching the name of the article “Obama and the Politics of Outsourcing” will also work)

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