Outsourcing, migrations, and the wall in the south

Discussion in 'Economics' started by eusdaiki, Dec 13, 2006.

  1. I've been wondering. The point of regulating migrations to a given country, is to keep people from certain other countries from having access to the more competitive wages that are paid in that country.
    Ok, and the point of outsourcing is that companies want to do their production outside countries that pay very high wages. So they go to low wage countries and pay wages a little above average for that country providing them with better wages [not as good as the ones earned by the fellas at countries with high wages but a little closer], until at some point where there are so many companies doing it the wages on both sets of countries become the same, somewhere in the middle.

    This will have 2 effects.
    It takes away the reason for outsourcing, so it stops.
    It takes the reason for migratory regulations so they dissapear.

    Since outsourcing is only going to become more and more attractive as communications become cheaper. Isn't it a bad idea to spend countless millions building a wall that would soon be as obsolete as Berlin's wall?