Three major categories of reasons for an ongoing transfer of manufacturing and service operations from Western countries, such as the U.S. and Germany to regions such as Asia-Pacific and Eastern Europe are
(i) lower labor costs,
(ii) lower raw materials and energy costs, and
(iii) less strict rules and regulations pertaining to employee rights, social responsibility and environmental protection.
Discuss the following issues:
What are the long-term strategic consequences to the U.S. economy resulting from outsourcing core manufacturing and service operations?
Do you think that the outsourcing trend should be controlled/reversed? Why or why not?