Exporting jobs

Quote from Covertibility:



If you ran a company, wouldn't you seek low cost alternatives even if it meant sending jobs overseas?

Such a tiring line about McDonalds and Walmart... those with skills and talent will find opportunities.
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What I'd do if I ran a company is irrelevant, I disputed your statement that low-paid jobs are exported and high-paid jobs are created.

It's the other way around and whether or not you find the McDonalds/WalMart line "tiring" does not change the fact that it's true and that this is the only kind of jobs currently created.
 
Quote from Turlo:

These jobs are easily exported, expect more companies to follow the lead of co's like Dell and IBM.

Reasons why:

low cost of highly educated labor
low cost of data transfer (unlike physical goods, there are little to no import cost)
low cost of bricks and mortar in India, China, Eastern Europe


I was on the phone with Dell tech support the other day. The guy was located in India, and I have to say he would have probably been over qualified for the help desk level computer professional in the US.

It is good for consumers, but bad for the US labor market.
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Good for consumers? LOL what? Those Indian tech support staff can barely speak English. Not only that, they have to read off the screen and will not ever alter their lines since they will get fired. Now whether they are knowledgable or not is a different question since they are not allowed to actually attempt to understand what you are asking. Plus, their English is not good and even if it is, the accent makes it near impossible to understand.

All tech support that has been sent to India has received nothing but negative feedback. You get what you pay for.
There has also been consideration to moving higher level tech support back to the US.
 
Quote from Cutten:

Worrying about "exporting jobs" is equivalent to wearing a sign on your neck saying "I am an economic illiterate".
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Making statements like that without any explanation makes one sound pompous but does not prove the point. Why did you even bother to post?
 
I am sorry, I was under the impression that lower overall costs usually translates in lower prices.


The only constant is change.
 
Well, good for IBM for recogonizing the opportunity over there. IF they didn't SAP or someother foreign firm would have.



"Is this a uniquely troubling situation? Again, not at all. US business owners have observed a profit opportunity and seized it. The alternative is that US business not notice the opportunity and let others get there first. This would hardly be something to celebrate. It is a testament to the acumen of US businessmen that they can go anywhere in the world, take advantage of local economic conditions and then sell to anyone else in the world. It so happens that American consumers are in a great position to buy the best products from everywhere in the world (so long as their government lets them). Thus do we see the end result of American capital producing for Americans in countries especially suited to host the process, while the US itself hosts ever more sophisticated production."

http://www.mises.org/fullstory.asp?control=1385
 
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