Evaluating the Impact of Offshoring on US National Security
Abstract
The term "offshoring" refers to the practice of a domestic company employing the services of foreign workers located in foreign countries to fulfill some portion of the company's labor requirements. The practice connotes talent redistribution amid the broader socioeconomic proclivity toward globalization. Offshoring is controversial because it anecdotally affects domestic employment and relocates intellectual capital. In 2004, approximately 70% of Americans believed that outsourcing jobs overseas actually does more to hurt than to help the U.S. economy. Two years later, still more than half of Americans were generally skeptical of any effort to increase free trade between the United States and foreign markets, feeling that the United States more often emerges short-handed. Also, relying on foreign countries to provide goods or services may appear to some as an example of national weakness. The weakness may consist of fragile economic dependencies or exportation of critical skills. In both cases, the risk of losing relative worth introduces an uncomfortable vulnerability. While offshoring may, in fact, deplete or dilute certain technical competencies in America, this research concludes that the practice does not necessarily present a significant threat to national security because it promotes international cooperation. This paper explores the current environment and projected implications of offshoring from the "strategist's weltanschuung" point of view, using Dr. H. Richard Yarger's Strategic Appraisal Process as a guide. The analysis establishes the significance of offshoring as an item of national strategic interest. The paper then sets forth arguments for and against offshoring, considering its merits in the context of comparative advantage theory. Finally, the paper offers recommendations for a national strategy for offshoring.
Document Details
- Document Type
- Technical Report
- Publication Date
- May 15, 2011
- Accession Number
- ADA565028
Entities
People
- Conrad Holbert
Organizations
- United States Army War College