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Offshore Outsourcing of Engineering: Implications for Innovation Policy Presented to Carnegie Mellon ... - page 20 / 46

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20 / 46

Ron Hira, Columbia University

rh2107@columbia.edu

20

Developing Country Impacts

Industrial Policy

Opening domestic markets to MNC’s – quid pro quo?

Import Substitution versus Export Led

Should countries pick winners through subsidies?

Race to the bottom?

Margins on the decline

Infosys – Prices Down 5%, Volumes Up 13%

“The economic situation, competition and the type of business we are, strategic global outsourcing, which is price competitive, has had an impact on the margins,"

– Reuters, April 10, 2003

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