Economics Homework Help

I’m working on a international economics discussion question and need an explanation to help me study.

Let’s talk this week about outsourcing. Check out the article Outsourcing Is a Shortcut; Insourcing Is an Investment on Entreprenuer.com. I found this quote interesting:

“A 2017 study from Pew Research Center… found that 30 percent of Americans surveyed believed that outsourcing jobs was having a negative impact on their own jobs and livelihood. As an entrepreneur, you’ll find that your employees can be your biggest assets; so ignoring their concerns about outsourcing isn’t the most intuitive step to take. I can confirm this lesson from personal experience: Having learned it the hard way, I’ve come to agree that insourcing can actually save time and money and build a culture that lasts.”[1]

What do you think? Is insourcing an investment that benefits a company? Wouldn’t it be a better use of resources to outsource non-essential tasks and invest in the parts of the business that really matter? On a national/global scale, what are the consequences of outsourcing production on the welfare of countries? Think about things in terms of both the country gaining the jobs and the country losing the jobs. What does the idea of comparative advantage tell us about outsourcing. When drafting your response, it might be helpful to find a news article or two talking about the real-world impacts of outsourcing. Also, think of the models we have discussed so far in this class. For example, does the Ricardian model of comparative advantage tell us anything on this issue?

[1] Kalis, M. (2018, April 25). Outsourcing Is a Shortcut; Insourcing Is an Investment. Retrieved from https://www.entrepreneur.com/article/312380