| numonex said: Outsourcing factory jobs to China is good in the short-term and significantly improves multinational companies bottom lines and profit margins. But in the long-term the loss of factory jobs results in higher unemployment in developed countries, local factories close down and consumers in developed countries may stop spending. Outsourcing lots of jobs ends up hurting a lot of people. |
Except that's not the case. Manufacturing in the UK, for example, has been falling for decades, now, and yet, recessions aside, employment has been rising - since the 2000s, in particular: when the rise of Asia started to go into full swing, and manufacturing started leaving at a much faster rate, and yet unemployment had been falling rather rapidly, also.
This is because new jobs are being created at a faster rate than which they are being lost. This is directly attributed to globalisation. What's happening is that different countries have different things to offer. China can offer cheap labour, so it's taking manufacturing. The UK can't offer this, however, but it can offer a far more educated work force, so businesses that focus on these areas flourish in our country. Hence our financial and research industries - China won't be able to compete at a grand scale with these industries for many decades, and, then, when they do, our competitive advantage in other areas will grow, and we'll specialise into a different area, again.
