Trade Policy

Submarine telecom/datacom cables cut in Middle East -- another "good" reason to outsource to India/Asia ?

From someone I know in kuwait:

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Most of you by now have heard that several major submarine cables have been damaged and cut: Two in the Mediterranean Sea, and now one here in the Gulf (off the coast of Dubai). Here is what I've gathered so far from this outage...

These cables are critical, as they link several continents together, and route not just internet traffic, but phone communications. This outage affects almost the entire Middle East. Some internet providers are completely down, while others are limping along. And if you're on satellite, well good for you. The rest of us are screwed.

What isn't really clear is why the cables went down. The current story is that a ship dropped anchor in an unusual spot, and that's what triggered all this. That doesn't sound right to me. But we'll see. Regardless of what happened, it will be weeks before the region is returned to normal capacity.

Economists Rethink Free Trade

Business week has a new article, Economists Rethink Free Trade

I find this amusing for for what I have read, the good economists for a long time have said current trade policy is not in the national interests and often is glorified labor arbitrage agreements.

From Alan S. Blinder, a former vice-chairman of the Federal Reserve and member of the Council of Economic Advisers in the Clinton Administration, to Dartmouth's Matthew J. Slaughter, an international economist who served on President George W. Bush's CEA, many in the profession are reevaluating the impact of globalization. They have studied the growth of low-wage work abroad and seen how high-speed telecommunications make it possible to handle more jobs offshore. Now they fear these factors are more menacing than they first thought

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