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To: Lizzie Tudor who wrote (16837)2/6/2004 3:33:19 PM
From: Wyätt GwyönRespond to of 306849
 
The statistics seem like they are taking goods from Applied Materials, where you have 3 US managers and 50 offshore- and allocating the *entire* product to the US.

it's not the entire product; they back out the foreign wages. what happens is, a given number of units of output is spread over a smaller number of domestic worker-hours, with the result that domestic output per hour is raised. overall GDP is reduced by the amount paid to the foreign workers, and more income comes in the form of corporate income (higher profits due to lower costs thanks to foreign workers) while less comes from personal income (fewer US workers).