The third effect is to erode California's claim to have America's most highly skilled labour force.
Developed economies' comparative advantage is in knowledge-intensive activities, because they have so much skilled labour.
Chile, still dependent on natural resources, badly needs new businesses and a more skilled labour force.
But the deeper reason for America's logistics problems is a mounting shortage of skilled labour.
What happens if and when the mobility of skilled labour rises too far to make these transfers feasible?
Many of the new jobs from inward investment are in call centres, some of which demand skilled labour.
But one of the readiest sources of skilled labour is closer to hand.
Although skilled labour is undoubtedly a boon, and cheap and willing labour helps productivity, alternatives could be better yet.
The tech industry is also concerned about the difficulty of importing skilled labour.
The plants had to be cut back and replanted, which took skilled labour.
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The firms hit hardest by the crisis were precisely those that had the biggest problems recruiting skilled labour before it.
There are increasing reports that firms are finding it hard to recruit skilled labour, and pay settlements are creeping up.
Singapore imports most of its lower skilled labour from other countries in the region such as India and the Philippines.
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Initially, China is likely to specialise mainly in relatively low-skilled labour-intensive manufacturing, whereas developed economies will concentrate on activities needing higher skills.
There are also some structural reasons behind Europe's problems over skilled labour.
In health, as in other industries, the raw materials can sometimes be moved to where there is skilled labour, rather than vice versa.
There is not enough skilled labour and fancy equipment in the world, he believes, to ramp up production as quickly as people hope.
The recent uptick in earnings at the bottom is a blip in an otherwise long downward trend in the market for low-skilled labour.
That is because a cluster will create pools of skilled labour, internationally competitive suppliers, access to venture capital and a sympathetic regulatory environment.
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Because Panama is short of skilled labour, many of the jobs created by further growth of the canal cluster would have to be filled by foreigners.
But the firm wants to hire a quarter of its 80-strong workforce in Gubin, which has a tradition of shoemaking and plenty of cheap, skilled labour.
The first stage in the cycle is that of factor-driven economies which focus on low-cost basic factor conditions, such as low-skilled labour, natural resources and geographic location.
Other bright ideas include getting local firms to pool information on new markets and to work more actively on fixing problems such as shortages of skilled labour.
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Arguably, the rearmament of the early 1950s used up skilled labour and machinery at a crucial time, when Britain was struggling to recover from the second world war.
Labour markets are tight: the unemployment rate fell to 6.4% in the three months to February, and manufacturers and service companies continue to report shortages of skilled labour.
Strategically located on major trade routes, it was easy to reach by land and water, and endowed with high quality wood, steel tools and a variety of skilled labour.
Governments fret that stronger currencies would make exports less competitive, but they would also encourage firms to shift upmarket from low-skilled to higher-skilled labour, which is essential for long-term prosperity.
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