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View Diary: It's the Tax Revenue, Stupid (88 comments)

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  •  Jobs move offshore today - that boat has sailed (1+ / 0-)
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    It's done for local market responsiveness and to keep various costs down, when it comes to setting up shop in a country for products that are sold there.

    But, jobs from the USA are offshored today due to lower burden costs, overall - that's not a tax-specific issue, IMHO.  Instead, USA-based multinationals are "following the Sun" in terms of resource costs.

    "So, please stay where you are. Don't move and don't panic. Don't take off your shoes! Jobs is on the way."

    by wader on Wed Mar 09, 2011 at 08:25:17 AM PST

    [ Parent ]

    •  they are following where the growth is... (1+ / 0-)
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      ...95% of consumers are outside of the US.

      the developing world will grow at 2x the rate of the developed world for the foreseeable future.  

      Yes, we are still the worlds largest market, but we aint' where the action is going to be...

      You dont' think this has an impact on where businesses set up operations?

      •  I mentioned "local market responsiveness" (0+ / 0-)

        as an umbrella to cover . . . local markets.  That includes consumers in the growth markets, yes.

        Which was only part of my addressing why we were offshoring USA jobs, the other being that multinationals are specifically moving towards lower burden rates for human resources and manufacturing (even after shipping and tariffs):

        Philippines ousts India for outsourcing top spot
        By Joel D Adriano

        The Philippines has emerged as the world leader in business process outsourcing (BPO), supplanting India in terms of total number of workers employed. Two studies, one by IBM's Global Locations Trend report, another by consulting firm Everest Group, show a shift at the top of the still strong global cost-cutting trend.

        With average annual growth of 46% since 2006, BPO has been one of the few bright spots in the otherwise moribund Philippine economy. The sector, almost non-existent a decade ago, has zipped from US$350 million in revenues in 2001 to over $9 billion last year. Analysts predict industry revenues will exceed $10 billion this year.

        BPO has evolved into a $150 billion global industry, driven largely by Western banking, insurance and technology companies that have outsourced parts of their IT operations to lower cost, English-speaking developing countries. The boom in the Philippines has been led by call centers, where Filipinos handle sales, customer service and technical support calls.

        "So, please stay where you are. Don't move and don't panic. Don't take off your shoes! Jobs is on the way."

        by wader on Wed Mar 09, 2011 at 12:48:31 PM PST

        [ Parent ]

        •  Not sure.. (0+ / 0-)

          ...we are in violent agreement or disagreement.  But I do think that in addition to the factors you mention there is a desire to be close to your customer, which transcends virtually all aspects of an organization.   In any event, we are crazy to just stick our heads in the sand and hope protectionist responses will make it all go away (not that you are suggesting this).

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