Mitt Romney, Outsourcing, and China Currency Manipulation
The Washington Post today reported that Mitt Romney’s company, Bain Capital, was one of the pioneers of outsourcing:
During the nearly 15 years that Romney was actively involved in running Bain, a private equity firm that he founded, it owned companies that were pioneers in the practice of shipping work from the United States to overseas call centers and factories making computer components, according to filings with the Securities and Exchange Commission.
Bain played several roles in helping these outsourcing companies, such as investing venture capital so they could grow and providing management and strategic business advice as they navigated this rapidly developing field.
Over the past two decades, American companies have dramatically expanded their overseas operations and supply networks, especially in Asia, while shrinking their workforces at home. McKinsey Global Institute estimated in 2006 that $18.4 billion in global information technology work and $11.4 billion in business-process services have been moved abroad.
However, Romney has taken a much tougher stance on the campaign trail. His website explicitly pledges to name China a currency manipulator on his first day in office.