By Li Zhineng
Date: 2004/05/30
Abstract:
The international relocation of the US service industry is rooted in the global structural transfer from massive production to massive service industry in the economy, which provided the organizational and technical source to the relocation. The economic recession after the internet bubble, as well as the competition in internet-based services, together initiated the international service relocation in the relevant industries, which experienced rapid expansion in short span of time. The US society is quickly aging which might bring about an anticipated long-term shortage of employment opportunities and a labor cost hike and push the US into utilizing the low-wage and low-benefit labor forces in the developing countries. The success in relocation of American rural population in the cities, as well as that with international transfer of the manufacturer industry, are best demonstration to the global transfer of service industry. In a word, the on-going US service industry global relocation will be a massive and long-lasting strategic activity.