The World Is Flat Release 3.0 Summary

Flattener 6 – Offshoring

  • The difference between offshoring and outsourcing is that in offshoring, a company places an entire factory in another country rather than just sending some work to another country. On December 11, 2001 China joined the World Trade Organization. China therefore assured foreign companies that they would be protected by international law and standard business practices. This meant cheaper labor, lower taxes, subsidized energy, and lower health-care costs for companies to build factories offshore.
  • Cheap imports saved U.S. consumers $600 billion from 1995 to 2005 and have saved U.S. manufacturers untold billions in cheaper parts for their products. This has helped the Federal Reserve to hold down interest rates which allows more people to purchase and refinance homes, and provides more capital for businesses to invest. Factories in a giant market like China can also sell to the Chinese without having to export. (Keep in mind this was written prior to the recent housing bubble in the US.)
Share this:
Share this page via Email Share this page via Stumble Upon Share this page via Digg this Share this page via Facebook Share this page via Twitter Share this page via Google Plus     If you like the summary, buy the book
Pages: 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21

Tags: ,

One Response to “The World Is Flat Release 3.0 Summary”

  1. I have had it with this unconsidered love of the Great Tom. Just have a gander at this if you really want to know what this narcissistic clown is all about:

    No, I won’t read Friedman again any time soon even if it is hot

Leave a Reply