Offshoring and Employment
Trends and Impacts
Offshoring—the transfer of an industrial activity abroad—has become a fact of life for business. But it is also perceived as a threat by a large segment of the general public. And much of the public concern centers on employment, especially the potential loss of domestic jobs. This groundbreaking report provides new insights into the phenomenon of offshoring. First, the report defines offshoring in detail, allowing readers to see the many ways that industrial activity—both in manufacturing and in services—can be transferred abroad. The report then describes the wide-ranging effects that offshoring can have on domestic employment—the positive, as well as the negative. Finally, this ground-breaking report outlines the public policy implications of offshoring. It suggests ways to limit the downside of offshoring while helping to build trust between the various stakeholders working to address this issue.
Also available in: French
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Defining offshoring
This chapter provides an in-depth definition of offshoring, outlining the many different ways that industrial activity – in either manufacturing or services – can be shifted abroad. For a given corporate group, distinction is made between the two major types of offshoring: i) relocation through the corporation’s own affiliates; and ii) international subcontracting to non-affiliated enterprises. In both cases, the portion of the operations sent offshore that had previously been intended to satisfy domestic demand is subsequently imported.
Also available in: French
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Click to download PDF - 548.87KBPDF