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Politics : PRESIDENT GEORGE W. BUSH
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To: Raymond Duray who wrote (451846)9/2/2003 10:42:13 PM
From: Siva Uppalapati  Read Replies (5) of 769667
 
Raymond,

Let's say there is an company X which has most of the employees in high wage country. (say for example japan/germany)

There is another company Y which has tapped into a lower man power cost structure (using india for example).

Assuming their products are same or about same, Company Y has a structural cost advantage when they compete head-on.

In the long run company Y is going to win out (assuming open markets,....).

I see American companies having a very low cost structure and lean and tough to compete against after this transformation.

I see in the near future, American companies winning.
Also people in cheaper wage countries also gain employment.
Both are going to in a win-win situation.

I understand the pain and dislocation this would cause to the affected people. But in the long run everyone is going to be better off.

Siva
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