Outsourcing and Free Trade Message Board

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Strategies & Market Trends : Outsourcing and Free Trade

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To: redfish who wrote (4)	3/11/2004 12:09:01 PM
From: Original Mad Dog	Read Replies (1) of 9

How about lower costs for pretty much everything you buy, for starters? If you only made things in the U.S., prices would rise enormously for everything from cars to clothes to services. A corporation can't just "keep" the reduced costs as pure profits, because in the vast majority of cases large profits will simply attract competitors willing to accept lower margins (i.e., to pass more of the cost savings on to customers). In fact, if you look at the current environment, you have extraordinarily low interest rates and yet low inflation as well, with an unemployment rate that is higher than it was a few years ago but still lower than it has been in 15 of the past 25 years. One explanation for that combination is that lower costs enjoyed by businesses from outsourcing to lower cost providers has been passed along to consumers. In the end, if things are made where you can get the best combination of cost and quality, there is more to go around for everyone.

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