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- numerous items that you buy and use every day are produced in other countries, primarily due to lower production and labor costs. many american companies maintain manufacturing facilities outside of the united states in order to remain competitive in the marketplace by reducing their costs of production. as more companies move all or part of their business operations outside of the united states, it can have both positive and negative effects on the economies in the united states, as well as in the host country. in the space below, list some of the positive and negative effects on both economies. answers will vary. some examples are provided below. positive effects on the united states large amount of goods available lower prices on goods some career opportunities as company moves into new markets negative effects on the united states loss of jobs increased dependency on imported goods positive effects on the host country brings new jobs into the country contributes to the local economy negative effects on the host country workers become dependent on the company company may influence local politics
For the US, off - shoring production can lead to more goods at lower prices and new career opportunities in new market expansion, but also job losses and higher import dependence. For the host country, it can bring jobs and boost the local economy, yet workers may become company - dependent and the company may influence local politics.
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Positive Effects on the United States: large amount of goods available, lower prices on goods, some career opportunities as company moves into new markets
Negative Effects on the United States: loss of jobs, increased dependency on imported goods
Positive Effects on the Host Country: brings new jobs into the country, contributes to the local economy
Negative Effects on the Host Country: Workers become dependent on the company, Company may influence local politics