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May 23, 2015

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Letter to the editor:

Outsourcing is part of business

It’s time to stop apologizing for adopting sensible market-driven solutions such as outsourcing. The market principles and conditions that incent private businesses to reach outside the U.S. for profits are natural and predictable.

We should never give in to the endless political criticism from the left to defy time-tested economic principles, like that of “comparative advantage.”

There are many reasons for investing in foreign markets, and these are elementary in nature: taxes, lower costs, market leverage, developing a new foreign market, cost to destination, factor distributions, and the basic forces of globalization and related need for market and organizational integration.

Businesses must decide what is in their best interests. After all, it is they who put up the risk capital.

Unfavorable industrial policies in the U.S., including high corporate taxes and regulatory burdens, create an unfavorable climate for local investment.

In addition, it often makes more sense for businesses to invest overseas.

When this is the case, they should be free to do so without government-imposed barriers and disincentives that end up inflating delivery costs to the ultimate consumer, restrict free trade or prevent businesses from investing and growing in the local and global markets.

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