Reply #13: Nope, there's a better solution. [View All]

[Xithras]

Believe it or not, I actually stumbled across this gem while trolling Freeperland, and I happen to agree with it.

The best way to fix the outsourcing problem is to change the way we define a corporations location. Today we have companies that are incorporated in one state or country, but effectively exist in another. So change THAT and you fix the problem. Redefine a corporations nation of existance as "The nation where a majority of that corporations primary products are created and/or where the majority of that corporations required daily operations take place".

Many of these companies doing their outsourcing would then be redefined as "foreign", which would open them up to possible levies and tarriffs, or higher tax rates.

This would also mean that a company like Hewlett Packard, which is outsourcing so much of its development and production to India, would be redefined as an INDIAN company. This would strip them of the unspoken "protections" that they enjoy as an American corporation and subject them to Indian corporate law. That thought should scare the hell out of ANY CEO considering outsourcing to a foreign country!