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Old 04-02-2004, 03:05 AM   #26
Kerryn
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Agreed. But isn't it really just shifting the money around to different sectors rather then strengthening the economy as a whole?

Personally I was under the opinion that the majority of technological components had come down because the technology to create them had become more effective and cheaper and because mass puchasing has driven cost down.

Lets be fair the top end DVD players are the same price they always were. Theirs just a large influx of mass manufactured goods at the bottom end of the scale.
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Old 04-02-2004, 06:10 AM   #27
Maximus Faticus
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I don't understand how saving money is a hard concept for some to grasp.

I'll break it down. Say you have $100 to spend. Before you could buy 1 DVD player. The profit the company would recieve would be say $40.

Now the DVD player is $70 and the company still makes $40 because of the cheaper labor. So they are making the same profit while saving you 30 bucks.

Another way to view outsourcing is technology. Because IBM was able to save a couple billion from outsourcing they could invent a much better computer. They would have a lot more money for research.
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