This Is Bangalore Calling: Hang Up or Speed Dial?

The U.S. service sector is in the midst of a transformation similar to the one undergone by the manufacturing sector. Some jobs are moving to other countries, some are disappearing, some are being born. But the service sector transformation is likely to be different. Technological advances and globalization are making it possible, but these factors reinforce each other in such a way that the gains to the U.S. economy are likely to be greater than with manufacturing, and the transition costs more widespread. Thus, superior and better coordinated domestic and international policies are needed to address the challenges and opportunities.