Question

The video mentions the loss of U.S. manufacturing jobs to overseas locations. What is this called? What is the opposite trend that has occurred in the United States with companies like Toyota and Honda?

Answer 1

The correct answers are as follows:
1. The loss of US manufacturing jobs to oversea location is called OUTSOURCING.
Outsourcing refers to a situation in which a company transfer part of its production process to external suppliers rather than completing the whole process internally. This method is usually employed in order to reduce the cost of production. The most important cost of production that is always reduced by employing the method of outsourcing is labor cost, because it is one of the highest cost in the production process. Most manufacturing companies in US now take part of their manufacturing process to other countries of the world such as China, where labor cost and other production costs are  drastically reduced  compare to that of USA. This increases the profits realized by the companies.

2. The opposite trend that has occurred in the United States with companies like Toyota and Honda is FOREIGN COMPANIES OPENING MANUFACTURING PLANTS IN THE US AND EMPLOYING A LARGE NUMBER OF WORKERS.
In contrast to outsourcing, big car companies like Toyota and Honda are now locating their companies in the United States.These companies normally need large number of worker to keep things moving, thus, a massive number of US citizens are been employed by these companies. The companies are thus playing a key role in the US employment sector.