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This is giving them a comparative advantage in a global marketplace. Instead Western companies are engaged in a fierce competition as to who exports most advanced nuclear technologies first to India.

Developed countries were protected against such competition previously. For example, India virtually begged for cryogenic engines for its space missions and super computers for its meteorological applications. Developed countries had previously insulated themselves from competition from China and India in two ways — exports of advanced technologies was prohibited and imports of goods were subject to larger import taxes.

Free trade has added to the woes of developed countries in another way.

Production of garments, toys and footwear has practically come to an end in the US.

That has happened because China and India have got the winning combination of advanced technologies and cheap labour.

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October 29, 2010 The world economy is showing some signs of revival. Globalisation has encouraged the developed countries to transfer their advanced technologies to the developing countries.

The solution for developed countries will come from adopting a protectionist stance.