"The great unbundling of production"

An interesting paper by economist Richard Baldwin on globalisation and offshoring. Worth a read/skim for impacts on jobs in developed countries like Australia. As offshoring spreads from manufacturing into services (the basis of our economy) things are in for a shake up. Baldwin argues that its questionable if governments can predict the impact accurately, but they can prepare in a general sense - ie: spend more on education, skills and knowledge. To paraphrase Thomas Friedman 'any process that can be digitised can be offshored and probably will be'.