"Outsourcing and globalization of manufacturing allows companies to reduce costs, benefits consumers with lower cost goods and services, causes economic expansion that reduces unemployment, and increases productivity and job creation"

Larry Elder draws attention to how outsourcing and globalization transform the dynamics of manufacturing and employment in the modern world. By shifting production to regions where costs are lower—whether due to wages, regulations, or the availability of resources—companies are able to significantly reduce their expenses. These savings can then be passed on to consumers, resulting in goods and services that are more affordable for a greater number of people. The proliferation of cost-efficient products increases the purchasing power of consumers, often elevating standards of living by making technology, clothing, appliances, and other essentials more accessible.

This flow of capital and labor benefits not just large corporations seeking to maximize profit but also local and global economies. When companies outsource and participate in global trade networks, they often need to scale their operations, expand distribution channels, and innovate rapidly to remain competitive. These efforts generate further economic activities, encouraging the establishment of new businesses and suppliers across borders. The resulting expansion sustains and even creates jobs—not only in the manufacturing sector but in ancillary industries such as transportation, information technology, logistics, and customer service.

Moreover, the competitive pressure fostered by globalization motivates companies to adopt more efficient methods of production, invest in new technologies, and upskill their workforce. As productivity rises, economies can generate more output with the same or fewer resources, driving growth. While some critics argue that outsourcing may displace workers in higher-cost countries, Elder suggests that, on balance, the process leads to overall job creation through the ripple effect of economic expansion. As businesses grow and new sectors emerge, employment opportunities diversify and multiply, contributing to reduced unemployment.

Ultimately, the interplay between lowered production costs, wider consumer access to affordable goods, and broad-based economic growth illustrates globalization’s potential to produce widespread prosperity not just for corporations, but for populations around the world.