Protectionism of economy.. continued

I wrote my thoughts yesterday on how the economic protectionism could come back and harm the economy in the long term and I did put a comment on Sramana Mitra’s blog about this to request her comment. She has been kind enough to respond back and point me to one of her earlier blog article on Forbes.com that talks about Perilous Protectionism.

One particular impact she states in her article was about the eventual cost increase if the outsourcing to other countries were to stop. She has also given an example of how Motorola will find it difficult to keep the prices of its cellphones down, if its been forced to operate in the US only region for manufacturing its goods.

I would recommend a read on this article who wants to know more on this topic.

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