A Wake-up Call From Asia [the broken link was removed] by Patricia Panchak [the broken link was removed]:
China and India very aggressively are pursuing advanced manufacturing. Increasingly, China’s exports to the U.S. are composed of advanced-technology products.
J.P. Morgan said it would add 4,500 employees in India by the year 2007, mainly by setting up operations in Bangalore to support its growing structured finance and derivatives businesses globally. Such jobs are not the simple, low-value call-center work that up to now we’ve associated with this developing economy. And J.P. Morgan isn’t alone; UBS and Goldman Sachs earlier made similar announcements.
The hope some retained that the United States would retain the highest end work and others would work on the less complex work is not what the future holds. The future will prove to be an international marketplace where the United States is a significant but not dominant player. That future can still be bright but it requires a different vision than one in which American dominance is taken as a given.
The conventional wisdom has been that expanded trade would result in the United States losing low-pay, low-skilled manufacturing jobs, said David Swenson, an economic scientist at Iowa State University. But “a lot of the jobs that we have traditionally thought of as high value, high quality, high benefits are in trouble, too.”
The conventional wisdom was that the rest of the world would not be able to compete with the United States for high wage, high value jobs. It turns out the rest of the world is much more able to compete for that work than was expected. Continue reading →