Labor Arbitrage!
The world in the recent past has undergone arbitrage in terms of the labor. We saw the jobs move from developed countries to developing countries like India, China and other south east Asian nations. The competitive advantage these developing nations had in terms of their capability, skills were utilized to the maximum. This led to the developed nations to think why can't such a labor arbitrage happen within their own country? Aren't there few states where the laborers are comparatively cheaper than others within the country? Well it did work for short period as the economics of efficient resource utilization across the world would dominate in the longer run. Now the situation is gradually shifting within the labor arbitrage but not in terms of geography but in terms of automated machinery (or robots) doing the same job at faster pace with better efficiency. Where does this lead to? My view is, we are evolving right now thinking that robots can ...