Re: More on Outsourcing and Offshoring

["Gary Santos" <evs@xxxxxxxxxxxx>]

Paul,

My fault. Not Mason's. I appear to have misused the term. My point however was a
"specialization" found in exporting countries -- cheap labor. Perhaps, I should
have used the term "absolute advantage"? Must have irritated a professor to see
the term used the way it was, an editor of a journal at that.

Gary Santos

>>  It effectively makes for a borderless labor market in a global experiment
>> with the idea of "comparative advantage".

Comparative advantage ASSUMES full employment of all resources before and
after trade and no movement of labor or capital across national boundaries.
If either of these assumptions are violated, then implications of comparative
advantage are NOT applicable!


see my book FINANCIAL MARKETS, MONEY AND THE REAL WORLD (now in paperback) for
further analysis.

Paul

Paul Davidson
Editor, Journal of Post Keynesian Economics
University of Tennessee
SMC 503
Knoxville, Tennessee 37996-0550
office phone #;(865)974-4221; office fax# (865)974-1686 or (865)974-4601
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http://econ.bus.utk.edu/davidsonextra/Davidson.html