Setting the Stage

Abstract

Although human reactions like fear and greed may prohibit accurate short-term forecasts, over the long run the fundamental axioms of economics hold sway. Inevitably, the market obeys the laws of supply and demand (sometimes it just takes a while). Thus, to gain insight into the enduring implications of offshoring, it may be helpful to take a look at a few basic economic concepts.

What’s going on ... is the end of Silicon Valley as we know it.

—Larry Ellison, Wall Street Journal, April 8, 2003