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Politics : Formerly About Advanced Micro Devices

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To: Raymond Duray who wrote (232844)5/16/2005 9:11:58 PM
From: TimF  Read Replies (1) of 1575911
 
who mistakenly view offshore outsourcing as just another manifestation of the beneficial workings of free trade and comparative advantage. In fact, offshore outsourcing is the flow of resources to absolute advantage.

1 - Neither China nor India have a large widespread absolute advantage over the US.

2 - Even when a country does have a widespread absolute advantage and another has a widespread absolute disadvantage, both can benefit by trade. Comparative advantage continues to work even when one side or the other has an absolute advantage.

Tim
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