[thomschoon]

How can american corporations compete globally with higher costs?

They can when they invest in their people through programs such as Lean Manufacturing/Toyota Production System. It takes guts and intergrity to train your people, give them the opportunity to develop skills, and then allow them a voice in how they do the work so the business can get better.

The outsourcing decisions are usually based on short term benefit versus creating a long term ongoing enterprise ( i think that is actually the responsibility of management). I am sorry to say that I have sent more than a few jobs overseas, all the decisions were made for all of the right reasons, at that moment. Sadly, teaching how to compete globally is not a common topic in many MBA programs. At some point we will need to train tomorrows leaders on how to compete versus following the Walmart/Nike model of finding the latest disadvanted country.

Sorry for the rant