That's an interesting theory and there may be some truth in it. But my first thought is that if I can increase my profits by outsourcing my subcomponent manufacturing, then I will outsource my entire manufacturing operation, then my technical support center and engineering and design group. I am left with only marketing, distribution, and other costs needed put my product in stores.Would you care to explain how outsourcing create jobs in the US. I don't subscribe to the journal so I can't read all of your link.
Basically he says that companies that outsourced jobs used the extra money they saved to create more jobs here. The jobs outsourced tended to be lower pay/lower skill and the ones created tended to be higher paid higher skilled. Which stands to reason because when companies develop a cost advantage they use it to increase market share and sales, necessitating more staff.
Of course understanding this would require thinking beyond Stage One, which many posters here are incapable of.
And what do I do with my profits? I do exactly the same thing again and again with other products. The idea that business will take profits from outsourcing and invest in the activities that create jobs in the US is dicey at best.
Yep the only US jobs they would invest in would be distribution and sales people.
Why would they do otherwise?