Article on the unexpected effects of outsourcing manufacturing

[Rabbitisrich]

http://hbr.harvardbusiness.org/2009/07/restoring-american-competitiveness/ar/1

 

You have to log on, or purchase the issue, to read the full article, but I highly recommend it the next time you go to Borders. The authors investigate the steady outflow of high-tech manufacturing and R&D capacity. They argue that competitive pressures compel outsourcing industries to gradually cede more and more of the value chain.

 

It's a fascinating article because it deflates the notion that advanced countries should always outsource manufacturing capacity to the low-cost producer.