Competitiveness, Not Offshoring, Is EU Weakness

Inexpensive cheap global labor poses fewer problems for the EU than accelerating technological change and the inability to adapt, according to a study from the European Commission. The global outsourcing market grew over the previous decade, from 8 percent of the world GDP in 1990 to 11 percent in 2003. The EU outsourcing market represented almost 15 percent of its GDP in 2003. “Technical progress elsewhere has helped other countries gain market share in areas previously dominated by the US or EU,” suggests the study “Globalisation: Trends, Issues and Macro Implications for the EU,” as described in “BusinessWeek Online.” “Indeed, EU imports of capital and intermediate goods, as well as high technology products, now constitute a higher share of overall imports.” – YaleGlobal