Tuesday, March 16, 2004

offsetting outsourcing

According to an an article on News.com, Colin Powell has asked India to open its markets to US firms to help offset the economic "damage" that offshoring will create. However, in the article it says that India opening its markets will not be a "quid-pro-quo" for off-shoring.

India, of course, is very concerned about potential American protectionist laws. From the article:

"Federal Reserve Chairman Alan Greenspan said that . . .[protectionist]. . . laws could damage the U.S. economy instead of protect American workers."

From the article, Powell's views on outsourcing/offshoring:

"Powell said that outsourcing was an inevitable offshoot of capabilities that the Internet and broadband technologies have made available to companies."

"'That gives you the kind of outsourcing that we have seen here. We have also seen outsourcing of jobs in the U.S. to Mexico, China and to other parts of the world' as the global economy develops, Powell said. 'At the same time, we hope there will be trading opportunities in other parts of the world, so that the U.S. can offset the losses.'"

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