Case SummaryThe American Outsourcing Case is a collection of factual information for the purpose of provoking debate. The authors present both the pros and cons of outsourcing and avoid introducing their own personal biases. The case clearly defines outsourcing and then focuses on describing its existence in China, Mexico, and India. First, the evolution and involvement of the United States in the Maquiladoras of Mexico is described. The implementation of NAFTA and the creation of the Maquiladoras were major catalysts in the growth of free trade between the United States and Mexico. China, in an effort to attract foreign investors, created special economic zones, which designated geographic zones allowed to operate under its own laws. Due to large tax advantages and low utility costs, outsourcing in special economic areas has become very popular. Outsourcing white collar jobs to India has also been a big investment, with their workers being inexpensive and technologically skilled. General Electric Inc. is known as the company with the largest market capitalization in the world. They have established themselves in more than 100 countries, three of which are China, Mexico and India. The case closes with a comparison of the advantages and disadvantages of outsourcing in the three countries and leaves the reader with thought-provoking questions about the future of outsourcing by U.S. companies OutsourceGE has outsourced to Mexico for the past 108 years and has employed approximately 30,000 people. citizens. Most of the thirty plants operated in Mexico were maquiladoras. GE's Mexican operations are aimed primarily at blue-collar workers, producing everything from motors to lighting products. Mexico's proximity to the United States allows for cheap shipping costs and short travel times. This is a distinct advantage over outsourcing to China. Despite this, GE has invested approximately $1.5 billion in outsourcing to China, creating approximately 12,000 jobs. In 2002, China was even identified as GE's main international growth target. Outsourcing to China was and is slightly more sophisticated than that to Mexico. GE has adopted a strategy to further develop distribution channels for sales purposes, create product services and possibly begin to delegate financial services. They sell, buy and produce goods in China. GE has outsourced electronics, telecommunications advances, jet engine services and even medical equipment to China. GE found India useful in the human capital sector, where it employed more than 22,000 people. They came across highly intelligent, college-educated Indians willing to work for a fraction of what Americans would expect.