Monday, February 27, 2006

Outsourcing of services

The international trade of services (unlike that of goods), often require only electronic signals to transmit images and other information past borders. Many tasks no longer require geographic proximity.

It's possible to export medical specimens for less expensive analysis. I suspect that if it were possible to hinder the shipping of specimens, they could be read and converted to electronic signals to cross the borders. If confidentiality were the issue, USA companies would transmit using ID codes unknown to the foreign service providers.

Due to our higher costs, the USA is going to experience a loss of many service jobs. These will not be limited to clerical and personal accommodation tasks. Many higher paying professional and technical tasks will be affected. The loss of these service jobs will run faster and deeper than our continuing manufacturing loses.

State and federal licensed Professionals will be protected, but these same professionals will outsource any feasible task from their offices in order to remain cost competitive.

Unlike the importation of goods, I’m unaware of any proposal that could effectively inhibit the outsourcing of services and be compatible to a democratic nation of free speech and enterprise.


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