Global labor arbitrage
Global labor arbitrage is an economic phenomenon where, as a result of the removal of or disintegration of barriers to international trade, jobs move to nations where labor and the cost of doing business are inexpensive and/or impoverished labor moves to nations with higher paying jobs.
File:Global_labor_arbitrage.png|thumb|Free-market globalization increases the labor supply by integrating foreign jobseekers who often work for low wages.
Two common barriers to international trade are tariffs and the costs of transporting goods across oceans. With the advent of the Internet, the decrease of the costs of telecommunications, and the possibility of near-instantaneous document transfer, the barriers to the trade of intellectual work product, which is, essentially, any kind of work that can be performed on a computer or that makes use of college education, have been greatly reduced.
Often, a prosperous nation will remove its barriers to international trade, integrating its labor market with those of nations with a lower cost of labor, resulting in a shifting of jobs from the prosperous nation to the developing one. The result is an increase in the supply of labor relative to the demand for labor, which means a decrease in costs and a decrease in wages.