[JPhillips]

Originally Posted by SFL Cat

Shorter: I'm never wrong.

No, I just read.

You too can find it through the miracle of the Google:

The cost of building a factory is more or less the same in the US as in China. The cost of transport is higher because goods must cross the Pacific Ocean. The cost of energy is higher, too. However, the cost of labor is lower, as is the cost of land on which to build the factory

or

According to a report by the American Electronics Association, high-tech companies blame second-rate math and science education in the U.S. for the offshoring of high-tech jobs. From Wired:

The American school system, which AeA researchers charge is failing to provide strong science and math education to students, is largely to blame for lost jobs, according to the AeA's report, "Offshore Outsourcing in an Increasingly Competitive and Rapidly Changing World."

"Companies aren't outsourcing only in order to obtain cheap labor; they are also looking for skilled technology workers that they increasingly can't find in the U.S.," said Matthew Kazmierczak, senior manager of research at AeA, and one of the authors of the report.

You also have a misunderstanding of taxation and outsourcing. Taxation occurs on income or profits. Regardless of where you make the widget the taxation on the sale of the widget in the US is what matters most. I know there are a lot of ways to fool with the numbers, but at heart outsourcing manufacturing will not effect your tax liability greatly. You'll only reduce tax liability by moving the whole company to a more friendly tax environment, but that really doesn't happen all that often.

You'd have a stronger argument if you were saying regulation is a reason for outsourcing.