Saturday, April 16, 2005

Economics & Voltage

Looking at the current wave of outsourcing (jobs from US to India ) reminds me of a basic theory about electrical voltage.Two point of different voltages - one at a higher voltage and the other at a lower voltage - can stay they are as long as there is no connection between them. Once they are connected their voltages become equal after some time. Depending on the resistance in the connection it could take long or short time for the voltages to be equalized.

Looking at two economies - US & Indian economy for instance - they can maintain their relative strength or weakness, as long as there is no connetion between them. Once a connection is established between them they are bound to be equalized, with time. It will happen eventually.
Outsourcing is probably the means by which the equalization will happen.

Reminds me of a line from the movie Matrix - " You hear that sound Mr.Anderson, that is the sound of inevitability..."

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