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Outsource away.(Economics And Regulation)
Daniel Dresser, "The Outsourcing Bogeyman," Foreign Affairs, May/June 2004 (foreignaffairs.org)
Outsourcing has become a hot political issue. Nearly all Democrats (and a fair number of Republicans) decry companies that send jobs overseas. While outsourcing is nothing new for blue-collar jobs, recent media reports have created a perception that massive numbers of white-collar jobs are now likely to go out of the country.
According to Daniel Dresser, who teaches political science at the University of Chicago, nearly all of the arguments against outsourcing are based on false data and incorrect assumptions. To begin with, only about 10 percent of jobs are even susceptible to outsourcing. All the rest--even in the information age--depend upon geographic proximity. Dresser writes that "the parts of production that are more complex, interactive, or innovative: ....marketing, research, and development," are very difficult to shift overseas. Some statistics, likewise, have been blown out of proportion: An estimate of 3.3 million job losses sounds dire ...
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