Source of Conflict
There are different views on the impact of offshore outsourcing on the various societies affected, which reflects the attitude of Protectionism versus Free Trade. Some see it as a potential threat to the domestic job market in the developed world and ask for government protective measures (or at least closer scrutiny of existing trade practices), while others, including the countries who receive the work, see it as an opportunity. In fact, offshore outsourcing has led to Domestic factories and companies closing down leaving tens of thousands of U.S. workers jobless while underdeveloped countries such as Brazil, India, Turkey, etc. begin to flourish. Free-trade advocates suggest economies as a whole will obtain a net benefit from labor offshoring, but it is unclear if the displaced receive a net benefit.
One issue offshoring of technical services has brought more attention to is the value of education as an alleged solution to trade-related displacements. Education may no longer be a comparative advantage of high-wage nations because the cost of education may be lower in the nations involved in the controversy. While it is true that education is usually considered helpful to competitiveness in general, an "education arms race" with low-wage nations may not pay off.
Read more about this topic: Offshore Outsourcing
Famous quotes containing the words source of, source and/or conflict:
“Because relationships are a primary source of self-esteem for girls and women, daughters need to know they will not lose our love if they speak up for what they want to tell us how they feel about things. . . . Teaching girls to make specific requests, rather than being indirect and agreeable, will help them avoid the pitfalls of having to be manipulative and calculating to get what they want.”
—Jeanne Elium (20th century)
“The act of birth is the first experience of anxiety, and thus the source and prototype of the affect of anxiety.”
—Sigmund Freud (18561939)
“Humankind has understood history as a series of battles because, to this day, it regards conflict as the central facet of life.”
—Anton Pavlovich Chekhov (18601904)