WASHINGTON, D.C. A new trade term is making its way around Capitol Hill - "insourcing." This term refers to American jobs supported by U.S. subsidiaries of foreign companies - 6.4 million of them, with an annual payroll of $350 billion. Insourcing represents another side of the outsourcing debate, one that has been completely ignored.

"The debate about outsourcing is essentially about globalization," said Todd Malan, Executive Director of the Organization for International Investment. "The media has focused on one facet of globalization: outsourcing. But the flip side of "outsourcing" jobs abroad is "insourcing" jobs to the U.S. from companies based abroad," Malan stated.

"Just look at some of the examples: Honda increased their U.S. manufacturing employment by 15% last year, Novartis moved its world-wide R&D facility from Switzerland to Massachusetts, and Samsung is investing $500 million in its Texas semiconductor plant where it will employ over 1200 people," Malan said.

Not only are these companies producing goods in the United States for the U.S. market, but U.S. subsidiaries of foreign companies are also manufacturing products here for worldwide consumption. U.S. subsidiaries account for over 22% of total U.S. exports.

Important Members of Congress are starting to acknowledge the significance of "insourcing." Click on the following link for a copy of a "Dear Colleague" letter sent to all Members of the House by Rep. David Dreier (R-CA) that emphasizes this point http://www.ofii.org/email_docs/insourcing_dc.pdf.

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The Organization for International Investment is a Washington-based business association representing U.S. subsidiaries of companies headquartered abroad. For additional information, see OFII's web site at www.ofii.org.