U.S. firms are not the only ones that engage in outsourcing. Many foreign firms do the same. When a foreign firm outsources to the United States, we can call it insourcing . For example, Mexican firms routinely send data to U.S. accounting businesses for calculation of payrolls and for maintaining financial records.
Many foreign hospitals pay our radiologists to read X-rays and MRI images. Foreign firms use American firms to provide a host of other services, many of which involve consulting. Also, when a foreign automobile manufacturer builds an assembly plant in the United States, it is in effect outsourcing automobile assembly to American workers.
Thus, American workers in the South Carolina BMW plant, the Alabama Mercedes-Benz plant, or the Toyota or Honda plants in Tennessee and Ohio are all beneficiaries of the fact that those foreign companies have outsourced jobs to the United States. Indeed, all across the country and around the world, hundreds of millions of workers are employed by “foreign†corporations—although it’s becoming difficult to tell the nationality of any company, given the far-flung nature of today’s global enterprises.
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