Trade economist Alan Blinder in analyzing how new technology will affect international trade, has predicted that Services will become more outsource-able as technology continues to develop. In the past, trade was limited by our ability to transport a product from one location to another: “any item that could be put in a box and shipped (roughly manufactured goods) was considered trade-able and anything that could not be put in a box (such as services) or was too heavy to ship (such as houses) was thought of as nontradeable.” Now as the internet becomes more secure and reliable, the range or products that we can deliver over long distances is expanding to include services as well as manufactured goods. Considering the role services play in the Japanese economy, accounting for almost 20% of GDP in 2010, a massive movement of service jobs out of Japan would have massive effects on the composition of the Japanese Labor force and its economy in general.
Not all service jobs are vulnerable to outsourcing. Some jobs are improved by proximity or physical contact with the provider of the service, such as hair-cuts, surgery, and childcare. Others like accounting and Technological services are particularly susceptible.