Is Offshoring A Wise Corporate Strategy?

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Is off-shoring a wise corporate strategy?
Introduction
The global economy has become a more competitive environment driven by new investments and the benefits that originate from them. As a result, business corporations in the U.S have acknowledged the relevance of off-shoring in maintaining their competitive advantage. Consequently, off-shoring has become a pervasive feature of the U.S economy. However, off-shoring involves moving production to foreign locales while continuing to sell goods to the U.S market. Consequently, one may wonder if such phenomenon is a threat to the economy or is it just an extension of free market capitalism in the U.S.
The increasing relevance of off-shoring is based on its ability to reduce labor costs. As a result, Musteen (2016) asserts that low-cost countries such as the Philippines, Malaysia, China, and India have become the target of multinational corporations. For instance, Ford Motor Company (FMC) has significantly saved more since it moved its IT operations in India. The IT venture in India handles all the company’s tasks from manufacturing bases spread across the world to e-business solutions. Consequently, based on low labor costs present in India, Ford Motor Company is able compete favorably while also generating large amounts of profit. However, off-shoring strategy not only benefits the company, but also the countries that host those companies. Economy wise, such countries gain more through employment and increase in GDP. For instance, due to their vital destinations with regards to off-shoring, the Philippines and India annual GDP is expected to grow at 8-10% for the next decade (Kleibert, 2015).
Nevertheless, with regards to the U.S economy, off-shoring is like sending jobs overseas. Pierce (2016) reports that 100,000 jobs are lost annually in the U.S manufacturing sector due to off-shoring. This is well demonstrated by CISCO which created a whopping 1500 jobs in India when it invested over $150 million in its research and development facility in Bangalor...