In The News

Outsourcing Finds Vietnam

Keith Bradsher September 30, 2004
Three decades after the fall of Saigon, Vietnam remains one of the world's poorest nations. But steadily, it is becoming the next participant in the global shift of jobs to developing nations. Strong mathematics education and a loyal workforce have attracted a handful of firms to the country. Low wages are another primary draw: Recent finance graduates make little more than unskilled...

Where Did All the Jobs Go? Nowhere

Daniel W. Drezner September 29, 2004
The issue of outsourcing has figured quite prominently in US electoral politics this year. Despite the headlines and political rhetoric, points out political scientist Daniel Drezner, outsourcing is really a minor issue, accounting for less than one percent of mass layoffs last year. Technological innovation has a far larger impact on the American job market, though few pundits argue that...

Budapest, the Next Bangalore? New EU Members Join the Outsourcing Race

Stefan Wagstyl September 21, 2004
American companies have become the world's leaders in outsourcing services to regions with low labor costs. Western European firms, previously slow to follow this global trend, have now begun outsourcing labor to central and eastern European countries, whose advantages include geographical proximity and language proficiency. Despite early optimism, a few obstacles lie ahead. First,...

Measure first, then cut

September 9, 2004
Bad regulations rarely make headlines, but a new study by the World Bank, "Doing Business in 2005," shows that excessive red tape is one of the chief obstacles to growth in almost all poor countries. Pointless regulations often foster corruption, as firms and individuals have a greater incentive to bribe officials not to enforce them. Entrepreneurs suffer the most, not only from...

A Dissenter on Outsourcing States His Case

Steve Lohr September 7, 2004
The issue of outsourcing has polarized the intellectual community, and the most recent rebuttal comes from Nobel laureate Paul Samuelson. In a soon-to-be published journal article, the distinguished economist challenges the prevailing theory that the US economy will, in the long-term, benefit from all types of trade – outsourcing included. Though the US has not felt widespread negative effects...

The Great Reverse – Part II

Marvin Ott September 6, 2004
As the rise of China alters the geopolitical landscape, countries in both hemispheres must devise foreign policy accordingly. In the second of a three-part series on the changing power balance, National War College professor Marvin Ott writes that while Chinese military and economic capabilities are evident, its intentions remain ambiguous. Experts fear that China - despite claims to the...

The Trek Abroad Quickens Pace

Anke Bryson September 3, 2004
The US is not the only country tackling the issue of jobs moving overseas; a recent study reports that German companies continue to shift operations to other countries. Despite labor agreements from Siemens and Daimler Chrysler to preserve some domestic operations, the industrial exodus may reach a peak this year. Further complicating matters, foreign investment in German industry has...