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Search for phrase: "offshoring"
Alan S. Blinder
The article addresses the nature of offshoring, a phenomenon which names the migration of jobs, but not the people who perform them, from rich countries to the poor ones. Due to fast development of technology, information flow around the globe is getting cheaper and easier. Thus, the group of tradable goods and services is constantly growing. This change will become as meaningful in its consequences as two Industrial Revolutions. The development of offshoring will become a massive challenge bringing wrenching social changes. Moreover, rich countries will have to modify their systems of education or social security net in order to adjust. themselves to new reality, and they have not done much yet. The conclusion presents the possible directions of these changes.