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Article on the unexpected effects of outsourcing manufacturing


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You have to log on, or purchase the issue, to read the full article, but I highly recommend it the next time you go to Borders. The authors investigate the steady outflow of high-tech manufacturing and R&D capacity. They argue that competitive pressures compel outsourcing industries to gradually cede more and more of the value chain.


It's a fascinating article because it deflates the notion that advanced countries should always outsource manufacturing capacity to the low-cost producer.

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