Module 2 articles notes - Article p 233 Offshoring The next...

Info icon This preview shows pages 1–2. Sign up to view the full content.

View Full Document Right Arrow Icon
Article – p. 233 Offshoring: The next Industrial Revolution? Summary:  Economists who insist that “offshore outsourcing” is just a routine extension  of international trade are OVERLOOKING HOW MAJOR A TRANSFORMATION IT WILL  LIKELY BRING and how significant the consequences could be. The governments and  societies of the developed world must start preparing, and fast. A controversy reconsidered - Mankiw (Harvard prof) making statement on trade: caused an uproar and was  criticized - Offshoring = offshore outsourcing  – migration of jobs, but not the people who  perform them, from rich countries to poor ones. - Economists rushed to his defense and backed him up. Their arguments based on  comparative advantage implying that trade in new kinds of products will bring overall   improvements in productivity and well-being. - HOWEVER, Mankiw and his defenders  underestimated   1) importance of  offshoring  and  2) its disruptive effect on wealthy countries - Even though, offshoring isn’t that big of a deal yet, constant improvements in  technology and global communications virtually guarantee that the future will bring  much more offshoring of ”impersonal services” or services that can be delivered  electronically over long distances with little or no degradation in quality  - The author is not saying that we should view the coming wave of offshoring as a  catastrophe or try to stop it.  - He is saying…The rules of economic trade show that the world as a whole cannot  lose from trade and increases in productivity. The US and other first world countries  have benefited from comparable changes in the past -
Image of page 1

Info iconThis preview has intentionally blurred sections. Sign up to view the full version.

View Full Document Right Arrow Icon
Image of page 2
This is the end of the preview. Sign up to access the rest of the document.

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern