Saturday, November 03, 2007

Calling India

A student sent me this video after our class on outsourcing and trade. I made the claim that one reason, perhaps the core reason, why people don't like international trade is for what are ultimately racist attitudes. It's about "us" versus "them." Protectionists make ultimately flawed economic justifications which are often inconsistent with other opinions they have about the economy.

I hasten to point out that there are some good reasons for a company to hire from it's native population. Cultural differences, for example, can be costly for customers to interact with (i.e. discerning through accents). However, people in practice seem to be unwilling to pay the higher price needed to ensure that common cultural ground.

The line between racism and issues of quality is a hard one to draw, but the video has clear examples of both.

HT: Ritu Joshi


Jenny said...

lol Once, my grandfather tried to hire a white guy to work in his grocery store. The customers complained, so that was the end of that! :roll:

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