International Monetary Fund Summary

Reread the Country Focus feature on “Moving U. S. White-Collar Jobs Offshore”: a) Who benefits from outsourching skilled white-collar jobs to developing nations? Who are the losers? For developing countries like India and the Philippines, the transference of white-collar jobs from the United States not only generates new jobs, it also brings new skills and knowledge that could be vital to the countries as they continue on the path toward greater economic development.

Students should recognize that greater employment levels will of course have the effect of pushing wages up, and creating greater economic prosperity in these nations. This in turn should be beneficial for American companies as new export markets develop b) Will developing nation like United States suffer from the loss of high-skilled and high-paying jobs to countries like India and China?

This hot issue is a highly sensitive one for many Americans—especially those who have seen their once secure jobs being shipped offshore. Many students will probably know someone who has suffered from this very situation, and may claim that companies have lost all loyalty to their employees and simply become profit seekers. Other students however, may point that companies are in business to make a profit, and do well for other stakeholders such as investors. Some students will simply argue that the loss of white-collar jobs is merely a manifestation of companies viewing the world as a borderless market—where they seek resources wherever they are cheapest, produce in the optimal location, and sell wherever there is demand.

1 c) Is there a difference between transferring high-paying white-collar jobs, such as computer programming and accounting, and low-paying blue-collar jobs to developing nations? If so, what is the difference, and should goverment do anything to stop the flow of white-collar jobs out of the country to countries like India?