Hence the new catch phrases such as ‘death of distance’ and ‘conquest of location’.Īt one level, this trend defies the conventional theory of economics. But what is new is that increasingly white-collar jobs, once considered safe from foreign competition, are now being offshored.Īdvances in telecom technology and decline in costs have made it possible for workers from any part of the planet to provide services seamlessly to clients in rich countries. That blue-collar jobs shift across geographic boundaries in pursuit of cheap hands has long been part of conventional wisdom. In the era of knowledge-propelled globalisation, it is possible for countries to overcome these handicaps by exploiting their comparative advantage in human resources. No longer is a country’s destiny tied down to its geographical location or its physical resources. Received wisdom today is that geography is irrelevant. This ‘geography is destiny’ theory which ruled for much of our recorded history is now seriously challenged by the latest sweep of IT-enabled globalisation.
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