Sample Economics Article Review Paper on Journal of International Economics

Article Review

            According to Blinder, offshoring is the lucrative trading in this technologically advanced period. In offshoring, employment has drifted from the wealthy to the humble nations. Employees have nevertheless stayed put in their respective living areas. Through this process, trading has assumed different perspectives where more products are now tradable. According to economists, offshoring is part of international trade (Blinder, 2006). Offshoring entails offering services to long distance clients. Through its principles, the world is to benefit and gear up to impending challenges (Blinder, 2006). In the article by Dixit, Pareto gains as a result of trade, is a highly significant theoretical rationale (Dixit, 1996). Pareto gains ascertain that business liberalization is advantageous. These benefits can be difficult to attain when the government employs lump sum redistribution without proper application of the redistributive policy. This has been problematic particularly after execution of the operation liberalization. Through such trade, series of contributions are realized. Time aspect in the dynamics of trade is a major concern (Dixit, 1986).

            Nearly every protestor underestimates the implication of this principle. Their arguments are based on the destruction experienced in the developed nations. Evidently, a quantitative revolution results to qualitative renovation. This theory explains offshoring. In the contemporary era, human activities derive more benefits than natural advantages. For instance, the attention of the Silicon Valley is due to the existence of Packard and Hewlett, as opposed to the occurrence of Silicon (Blinder, 2006). Consequently, it is needful to have a deeper perspective of offshoring. Factors such as communication however play a major role in determining the product and service to be traded internationally. In the article by Dixit, Pareto trade is beneficial especially when trade liberalization has been applied (Dixit, 1986). Conversely, absence of proper speculation can lead to disruption of dynamic trade. Therefore, the entrepreneurs ought to ensure actively that strategic policies have been applied for effective results. In the article, it is however unclear how time factor is to be applied in the management of this form of trade.

References

Blinder, A. S. “Offshoring: The next industrial revolution? Foreign Affairs.” New York. 2006. 85 (2): 113.

Dixit, A. K. “Gains from Trade without Lump Sum Compensation,” Journal of International Economics. 1986. 21