India tries exam to boost quality of outsourcing

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Shows the problems with an export focused economy.

India and China both are starting to feel the pressures natural to economies structured around a trade surplus. Eventually, you can't finance the surplus any longer and the whole thing comes undone (see Japan). For some third world countries, this may still be worth the risk because it is a fast way to create a core group of experienced professionals. However, if they don't understand the limits to this model and have a workable plan to switching to a more balanced model they are in for trouble.

For those of us in the US/Europe, etc. the real problem is that while this model doesn't work for the long run, our employers are likely to always find a country where the model is working for the time being.

I'd be all for free trade with countries which aren't rigging the game (exchange rates). Unfortunately, our politicians don't seem to get this. To be honest, in the US it is primarily the Republicans who are furthest from reality here.

Posted by: enduser_z   Posted on: 08/24/05 You are currently: a Guest | Members login | Terms of Use

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