The Muddles Over Outsourcing

'The Muddles Over Outsourcing' is a policy paper by three world famous trade theorists/economists Jagdish Bhagwati, Arvind Panagariya and T.N.Srinivasan, partly in refute to Paul Samulson's earlier paper. The three pro-globalization authors start by reinforcing the definition of outsourcing as the services trade at arm's length that does not require geographical proximity as defined by WTO and widely accepted by its members. They go ahead by stating that outsourcing is similar to conventional trade in that the former raises no new analytical issues or quantitatively different results. They end the essay on a optimistic note hoping to dispel some of the fear of outsouring, but also a cautious one - 'Fear has big eyes. It also has deaf ears'.