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Hiring developers from another country - need advice
Message
From
21/08/2002 11:53:14
Dragan Nedeljkovich (Online)
Now officially retired
Zrenjanin, Serbia
 
General information
Forum:
Visual FoxPro
Category:
Other
Miscellaneous
Thread ID:
00691761
Message ID:
00692009
Views:
27
You raise a few valid points, which just tickled me to expand a little; since nothing is monolythically black or white in this complex world, I feel compelled to add some of my thoughts.

>Free trade and globalization are different than economic growth/recovery in your own country.

Depends which country is yours - the one that hits the others with globalization, or one that gets hit. Your sentence may be even more true in the latter case.

>Paying workers in another country to do work specifically for the hiring country is not part of globalization.

I presume it is, but not a major nor a particularly important one.

> Hiring workers in another country is a double whammy on the home economy.

Keep in mind that we got two homes here, i.e. two countries.

> First, the workers live in another country so what they earn will not be spent in the paying country [bad economically].

Right, but not completely. If these guys get rich, they have, along the way, got to know the paying country, and may in time become its good customers, even proponents. I've seen arrangements like this, and I've seen loads of books and hardware being sent from here (i.e. being bought here first). The outsource programmers have also visited here for extended periods of time (so they've spent considerable amounts of that money here, plus the company paid rent, air fare etc for them). In my estimate, about 40% of the total cost of their work eventually ended in their pockets, the rest was fueled into economy here.

OTOH, what I think is more important is to have the rest of the world rich enough to be your customer tomorrow. You can't make much money on poor people, right?

> Second, the paid worker will not be paying taxes to the home country. Now I am all for no taxes, but this is bad for us because of the system we have to live under.

This is unfair on both sides of the fence. Both partners in this transaction are better of than when hiring/hired locally, just because the lack of taxation makes this cheaper, which is an undeserved benefit. Still, it's not that bad - the hired guys will pay VAT and other retail taxes which are, AFAIK, much higher over there, when they start spending that money. And anyone else there who makes money on them will pay income tax. May be just enough to start the flywheel spinning a little.

> For trade/globalization to work you have to have a sound economy. For the growth to evolve it certainly helps to have free trade.

You need a sound world economy, or globalization leads to unilateral exploitation. Besides, from what I know about political economy and market, there are three basic markets that need to be free if you want to have free trade: market of goods, financial markets, and of labor. Now the current incarnation of globalization seems to have forgotten the third.

back to same old

the first online autobiography, unfinished by design
What, me reckless? I'm full of recks!
Balkans, eh? Count them.
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