Hence, the new catch phrases such as “death of distance” and “conquest of location”. The shifting comparative advantage is most visible in the services sector. No longer is it just low-end services such as data processing and call centres that are outsourced, but high end, skill-intensive services.
Thus it is that financial analysts in Chennai provide tax consultancy to clients in Chicago; engineers in Buenos Aires design roads and bridges for Berlin; and radiologists in Manila provide medical diagnostics for patients in Manchester. On the other hand, it is low-end services such as laundry, janitor services and taxi driving that remain location tied.