Any comments on how we can keep the work here in Us. instead of having it exported to other countries like India, Ireland, China etc.. What about increasing the foriegn workers visa program? It would be hard but better than lossing the jobs to the other countries? any comments/
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Jason and I were having a discussion about this the other day. Frankly, you cannot have free trade and expect benefits too (not in all the cases). If you want free trade then you have to eliminate the foreign worker program. Thats the way it works in most parts of the third world. India / China / Eastern Europe have very stringent immigration laws with little or no provision for foreign workers. This is understandable because they have higher umemployment rates and a larger human resource pool compared to western nations. So, if the west wants free trade it has to eliminate H1B / L1, this would create jobs here because companies like Tata / Infosys etc. would be forced to hire Americans to do the onsite piece of work. A major chunk of work, I might add and also the best paying part. Another alternative is for the government to impose quotas on companies. Example, take company ABCD, a big consumer of offshore labor. The government could impose a quota based upon how much revenue this company earns for the nation. If ABCD earns $5 million per year through exports then ABCD is entitled to import $1 million in software from offshore labor. This would allow companies to still utilize offshore labor and keep costs down without overusing / misusing the concept.
if you want freetrade then you have to accept that if foreigners can do the same job at a lower price they will probably win contracts. this will continue until poorer countries become richer so that wages are virtually the same. once that happens there will be demand for their services in their own country so they wont see much of a drop off but in developed nations it will probably shift back home, as the costs even out. your best bet is to get into high security / high quality / high skilled work which is unlikely to shift abroad.
Kim Jong II (North Korea's Dear Leader) said:Nuclear weapons don't kill people, people kill people.
The problem is that there is the World Trade Organization (WTO) overseeing the trade barriers, such as quota, tarriff, ..., etc., every member country erects. While it is annoying that we have to play by WTO rules, the world would be in a big chaos if WTO is dismantled. I cannot think of a solution. The person who works out "the employment in globalization" will definitely win the Nobel Prize in Economics.
Originally posted by Tim Holloway: Think about it. Is it really "Free Trade" when the jobs can be moved but not costs of living?
You're free to change your cost of living, you just may not enjoy doing so. If you find that difficult, it's because you and others in the free market in which you reside have decided to set a fair market price for goods which happens to be higher here than elsewhere. --Mark
Just an observation - I've applied for a job with a large multinational company which spends approximately 25% of its turnover on IT every year. Apparently they've had good results with the outsourcing of their technical support centers to India, but have had much worse results outsourcing development work, regardless of whether the contractor was based on a different continent or a local company 10 minutes walk away. I suspect that there will be a limit to the amount of outsourcing that it is possible to do. They then added that they saw Australia as a lower cost base and intended to double their IT staff there every year for the next couple of years. I may be packing my surfboard and applying for a visa.... (actually maybe the other way round) I suppose what I'm saying is that this flow of work works both ways - I certainly wouldn't mind taking a pay cut to move to Australia!
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