The evils of outsourcing

Outsourcing by American businesses to India is blamed for the slow destruction of independent businesses in America. Here he says outsourcing swept away his and his father’s savings ,destroyed his company and rendered his employees jobless.  In India we are gloating over it because it has reduced our unemployment but this does not mean that it is desirable to continue with it unless backed by the cost economies arising out of comparative advantage not in one or two areas of manufacture but in several other areas as well ,some in India’s favour and some in America’s favour .Obviously outsourcing should be resorted to both ways ,instead of one way. I take some services from you and you take some from me. Since this is not happening now ,imperfections have come into the economy leading to a structural imbalance which is not good for the country in the long run.

Links:
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