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.
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Executive Summary
This report does not look at the employment consequences of globalisation, but it examines one particular aspect of globalisation, which is offshoring. In Chapter 1, offshoring is defined as the total or partial transfer of an industrial activity (manufacturing or services) abroad, either to an existing or new affiliate, or through subcontracting to non-affiliated companies. The portion of the activity sent offshore that had been intended for the domestic market is then imported.
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