Technology Slowing Outsourcing and Global Trade

[Economy 52,854]

https://www.google.ca/amp/s/business.financialpost.com/news/economy/canadas-best-chances-for-trade-growth-may-not-be-in-china-report/amp

 

As technology keeps making automation more efficient with more production per worker, the hunt for cheap labor is becoming less and less relevant

 

As a result more and more companies are no longer making plans for overseas building of plants and instead are choosing to manufacture locally closer to their customers

 

As time goes on, there will be less incentive to open up a plant to make shoes in Asia for example just because labor is cheaper

 

However one sector where global trade may accelerate in is services as the digital era makes exchange of information an all time ease.