What Goes Around…

New York Times Columnist Thomas Friedman argues that while outsourcing may relocate American jobs to low-cost countries, it also creates jobs by stimulating export demand for American products. "Look around this office," an Indian call center owner remarked to Friedman, "All the computers are from Compaq. The basic software is from Microsoft. The phones are from Lucent. The air-conditioning is by Carrier, and even the bottled water is by Coke." In addition, the owner points out that 90 percent of the shares in the call center are owned by US investors. Friedman believes that US policy should encourage businesses "to assemble the best skills from around the globe," but at the same time should "cushion those Americans hurt by the outsourcing of their jobs." No matter what, though, he says that the US should not erect protectionist walls, because although outsourcing means lost jobs, it also means more work for Americans. -YaleGlobal