Author Description

The term of offshoring refers to the relocation of jobs and production to a foreign country. The relocated jobs and production could be at a foreign office of the same multinational company or at a separate company located abroad. In constrast, the term outsourcing doesn't necessary imply that jobs and production are relocated to another country. The major outsourcing service jobs include human resource, accounting and information technology etc. in-house service jobs in large organizations. However, the loss of service jobs and factory production is caused by offshoring is diffuclt to measure. It is also difficult to determine the impact of offshoring on total services employment in the United States or other countries. International trade in services covers a wide range of industries and activites. For example, travel and transportation includes travel expenditures, passenger fares and frieght and port services, royalties and license fees cover transactions including patents, copyrights, trademarks and other intangible proprietary rights to use, produce or distribute products. Other private services include many of these industries, such as education, financial services insurance, telecommunications and other professional services etc. Some economists indicated that occupational employment statistics for the Unisted States provided additional evidence that past service sector offshoring had been small. About 14 million service jobs were at risk of offshoring in 2000 year, when about 96 million service jobs had a low risk of ofshoring. The decline in the at-risk service occupations from 2000 year to 2002 year was about 218,000 jobs or roughly 109,000 jobs annually, relatively small number that is consistent with the estimates of McCarthy or Zandi. In percentage terms, employment in the at risk occupations fell at a faster rate from 2000 year to 2002 year than in the low risk occupations. This faster decline is consistent with offshoring activity, although the decli