Businesses can export jobs to developing countries where labor is less expensive to employ, thus saving on overall costs. Although, only a small portion of job losses within recent years in the United States have been linked to outsourcing, the fear of massive layoffs has driven American voters to consistently make outsourcing an election issue. Limitations on the amount that a business can outsource work has been proposed as a way of coping with the realities of globalization and protecting American workers.

The debate in American politics has been portrayed in terms of protectionism versus free trade. In general, Democrats favor the protectionist policies that appeal to trade unions, the unskilled workers employed in globally uncompetitive sectors, and those most at risk of losing jobs to cheaper sources of labor abroad. Republicans are allied with business interests and support policies that allow businesses to freely pursue opportunities in international markets. Businesses and Republicans argue that efficient use of resources creates more jobs by allowing businesses to grow. In addition, cheaper labor will produce cheaper products and services that will require less of the consumers' income. Politicians from both parties tend to approach this subject with the utmost sensitivity as the interests of both labor and business shape their agendas.

In the past, restrictions on outsourcing have been suggested in response to job losses in low-skilled manufacturing, a sector in which producers in are no longer considered internationally competitive due to high labor costs. Increasingly, American employers are outsourcing skilled service and tech positions. India, in particular, has benefited from the movement of jobs by supplying a highly educated workforce with low-cost labor.

The leading 2008 Democrat and Republican presidential hopefuls have developed moderate positions that center around helping displaced workers in the US and ending tax incentives for businesses that export jobs.