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Fed: Outsourcing helps U.S. economy


DALLAS, Feb. 27 (UPI) -- A senior economist at the Dallas Federal Reserve Monday said in the long run, offshore outsourcing results in overall economic gains.

Thomas F. Siems, in a newly released paper, says lower consumer prices, better products and higher productivity growth are among benefits of outsourcing to other nations.

Siems acknowledges although offshore outsourcing can negatively impact jobs and wages for some workers, it is better for the economy to accept the challenge of competition and resist the temptation of protectionism.

"Indeed, the secret to faster growth and greater prosperity lies in allowing individuals and businesses to do what they do best -- and outsource the rest," he says.

Globalization doesn't just mean increased competition; it opens opportunities for cooperation, says Siems. Through global outsourcing, companies become more dynamic.

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