India is a large services exporter, with comparative advantage in IT services. The Indian government will...

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Economics

India is a large services exporter, with comparative advantage in IT services. The Indian government will want NZ to make it easier for NZ firms to outsource their IT services to India. What are the trade-offs facing NZ in encouraging outsourcing of IT services to India? Your answer should reflect on gains and losses to the NZ economy from such outsourcing, both in the aggregate and in distributional terms (identifying winners and losers).

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