Perhaps, but don't you think it is time for some good intentions other than profit motives?
No, I certainly don't.
I expect business to apply sound marketing principles and strive to better serve and provide value to the customer at a profit. I don't expect them or even want them to be social agencies, environmental activists or anything other than a business.
I suspect some may be, but not all. Most of the outsourcing with which I am familiar was done for lower priced labor and the shipping is not a major issue. Example: textile and telephone tech support.
Understanding that both Dell and Microsoft have returned the vast majority of telephone support to the USA due to poor performance in and by India.
Even in textiles, I wonder how much was actually due to labor costs? Adidas cited locality of resources as the reason for opening a plant in Singapore, that the leather and rayon used in their shoes was produced in South East Asia and that manufacturing there actually reduced over all logistics costs. New Balance and Nike both claim this to be bullshit, and continue to manufacture their shoes in the USA. But note, no one cited labor cost as a factor. Nike is particularly a good study as their use of automation negates any concept of labor as a factor. Human hands don't touch the shoes during the manufacturing process.
We unfortunately cannot control that.
In fact, we can control it, through tariffs and import duties.
But I believe that the natural economic revolution will eventually do just that.
The time period for third world nations isn't reasonable.
Polluted water in a stream will eventually purify as it passes over rocks a sand, but I wouldn't include it in my drinking water.
Competition with lower labor costs or lack of regulation is certainly a problem, and again, we can't control the laws in other countries. Only their growing up in a free market which will eventually reject their products will force those governments to control their own negative issues.
Why?
If compliance to certain standards isn't the price of admission, why would they ever comply?
When I went back to school for my MBA, the university said that college trigonometry was required. I had trig in high school, and had no desire to take it. But it was required, they simply didn't hand out a Masters degree to anyone who didn't pass the class. These were the basic standards. If I wanted the benefits of an MBA, I had to yield to the established norms.
The same is true of nations that want to trade in the Western Markets, if they want the benefits of entrance, they must comply with the standards.
It is the only thing that does makes sense. As long as we resist the exportation of jobs, no matter the reason, be it cheap labor or lower taxes and less regulation, there will be no growth of industrial ethics in the 3rd world.
And yet we have tremendous growth. Even with the economic pessimism that is the norm, our economy is growing. We stand at the brink of one of the biggest economic growth spurts in history, biotechnology. This will dwarf even the digital revolution, and the United States is the undisputed leader.
That is what an economic revolution is all about, the growth of industrial ethics and parity in standards of living. As the people in other countries start to enjoy their economic parity they will demand reforms of work place safety and environmental controls.
To the extent that they can. In many situations, that will require political revolution.
As I said, " What I do believe is that the wealth will gradually move as labor forces the world over create a market place the world over".There is no doubt that some countries have a better education system and that their citizens are better able to cope with the explosion of knowledge and technology.
Those nations will join the first world quickly. Poland already has, for all intents and purposes.
India is a country which 60 years ago was a country of virtually no middle class.
They still don't have much of one.
Their education system has improved significantly of this half century to the point their literacy has spread even to the villages.
India still maintains the caste system. Those born "Untouchable" (Pariah) will never rise beyond menial labor, Sudras will never be allowed in positions of technical skill or any authority. The overwhelming majority of the country still lives on less than $10 a day.
Economy of India - Wikipedia, the free encyclopedia
Their manufacturing capability has improved drastically and as a result they now have a burgeoning middle class which is becoming a major market.
The Indian economy is indeed growing, in a hundred years it will probably reach Western levels. Currently though, a great deal of the people are excluded from the economy. The two lower castes have zero economic growth nor hope for it.
Their labor force was instrumental in this change and will continue to pull them kicking and screaming into the modern world. With well over 300 million new middle class Indians enjoying the fruits of their labor their country is modernizing rapidly.
Such modernization is limited to a select few in the larger cities.
I have personally experienced the old India (I lived there and graduated from High School there in 1952. I have returned to India and experienced the major changes in their society. I believe the people in other 3rd world countries can advance too; and I believe it is time we stop putting road blocks in their way.
I'm not sure that we put road blocks up by not moving our manufacturing to India.
Like to admit it or not, the industrialized world has definitely intervened against this development for reasons which are not all clear; fear of their catching up? Maybe, more likely the fear of competition for scarce resources as their economic revolution takes over.
No one has stopped India from developing save India. That seems to be slowly changing, but even this has been spurred by Western companies doing business in India rather than India developing products and capacity on it's own.
You do remember that the Bhopal incident had wide ranging impact in India besides the horrendous loss of life and destroying the health of many more. That one incident caused significant growth of awareness where before it was laissez faire; but hardly the same since 1984.
I hope you're right about this, but I'm not convinced. And perhaps India has wised up, but what of Cambodia, Peru and a thousand other backwaters?
BTW, don't you think it is time to apply a little supply side economics and call a tax holiday so as to repatriate all that money being kept offshore so as not to pay exorbitant taxes?
To what purpose?
Maybe even double taxes? The IRS does not give full tax credit for taxes paid overseas now do they?
Corporate taxes are almost always double taxes, even domestically. The same dollar is taxed twice in most cases. The corporation is a legal entity, therefore taxed on EBIT. The same dollar is taxed when paid in dividends to shareholders or when stock is sold and the appreciation is taxed as a capital gains.
Tax reform is desperately needed.