The labor cost is one of the factor why companies or manufacturing industries outsource jobs and in general we think that this is a negative thing. Are there even positive effects to the economy if we outsource the jobs?
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Why outsource? Sooner or later someone in the outsourcing country will decide to clone the work you are outsourcing and sell it direct to your customers for less. Outsource making shoes and suddenly shoe factories will spring up.
How about them quality?
You make a good point. But that copying is likely to occur anyway. In any case, those who choose to outsource are looking to reduce current costs and meet quarterly profit goals. They are not thinking ahead.
Well Sid, there is a difference between someone copying you, and you paying someone to learn how to do things who then copies you. Ten years or so ago software development was outsourced to India. Now the firms outsourcing have Indian competitors.
But that is capitalism, in order for the business to have more profits, the costs should be reduced, in this case, labor? Do you believe that when a company profits, it will increase its investments and in turn gives more tax to the country?
pagesvoice: Patriotism and capitalism are incompatible. Or to put it another way, money's only loyalty is to money.