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Chapter 19 – Section 1
Economic Resources
MALE SPEAKER #1: The tax returns of some of the America’s largest companies are being prepared in this room by accountants in Bangalore, India. Like American accountants they speak English and are college educated, but while a starting accountant in the US earns up to $40,000 in salary and benefits...
MALE SPEAKER #2: CPA starting in India would earn about $6000.
MALE SPEAKER #1: So Clarence Schmidt, head of US-based Outsourced Partners International, now has 200 accountants at his Bangalore subsidiary. He is expanding office space and training more Indian workers.
MALE SPEAKER #2: And we are planning to ratchet it up to nearly a 1000 within the next six to nine months.
MALE SPEAKER #1: U.S. technology companies already have a major presence in India; now according to a new survey, financial services firms plan to move half a million jobs overseas over the next five years. Wall Street giant JP Morgan plans to hire 40 research analysts in India, at a quarter of what it costs to hire them here. Do you think this is going to be a trend in the industry?
MALE SPEAKER #3: I think off-shoring of higher-end; knowledge-based, analytical functions will be a significant trend in our industry.
MALE SPEAKER #1: It is a trend that could reshape our entire economy. Forester Research predicts more than 3 million service jobs will move overseas in the next dozen years, just the way manufacturing jobs disappeared in the past decade. How many factories did you say you have closed?
MALE SPEAKER #4: Oh, let me see… one, two, three…
MALE SPEAKER #1: Dan Terlizzi, who runs the Capezio shoe company has shut four U.S. plants and moved 600 jobs to China, Thailand and Brazil in the past 10 years. As a manufacturer, how does that feel to watch that happen?
MALE SPEAKER #4: It’s very… It is upsetting, because I know all these people here are counting on us for their livelihood.
MALE SPEAKER #1: This is Capezio’s only remaining plant here, 35 workers in Fairlawn, New Jersey making ballet shoes. But Terlizzi says it is expensive to keep it open.
MALE SPEAKER #4: So I am always thinking about, on a daily basis, moving this facility to another country.
MALE SPEAKER #1: One point three million manufacturing jobs have already moved abroad, now an exodus of service jobs is underway. An exodus that could tax the American job market and the US economy.
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