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based legal processes . This contributed to a form of trade that was quite different from that of the previous period . In particular , large-scale labor arbitrage — the movement of work from high-labor-cost countries to those with low labor costs — became commonplace , facilitated by financialization and technology . Through the 1990s , the march of prosperity hastened ( see Exhibit 3 ). Economic activity and global trade increased throughout much of the world while society continued to make great strides forward . People were living longer , poverty was being reduced , and the world was getting better . productivity , opportunity , global trade , and one another , generally irrespective of national boundaries . This new level of connectivity made it feasible for global companies to manage complex supply chains . The development of technologies , from the container ship to the global Internet , made it easier to communicate and ship goods . Goods no longer needed to be produced near consumers , and components no longer needed to be manufactured together . Manufacturing jobs began to migrate en masse to emerging economies , which at the same time experienced a surge in inflows from foreign direct investment .
In the mid-2000s , outsourcing services as well as products became increasingly common . The exporting of jobs expanded to include call center operations , software development , and secretarial and clerical work ( see Exhibit 4 ). Technological and financial factors , such as the short-term imperatives of automated trading and the pressure for financial performance from shareholders , added incentives for companies to conduct labor arbitrage ( and other forms of financial and environmental arbitrage ) at an everlarger scale .
Globalization moved rapidly beyond Europe and Japan to countries that previously had been largely left out . Asian tigers , Middle East oil producers , former Soviet bloc countries , and large emerging countries such as China and India all adopted market economies , making remarkable gains in economic well-being . In China alone , more than 600 million people were lifted out of poverty between 1990 and 2013 . ( Despite this progress , World Bank figures show that 10.7 percent of the world ’ s population lived on less than $ 1.90 a day in 2013 .) India also began its 20-year transition from a largely subsistence economy to a global economic powerhouse , with an explosion of private companies . The rise of skilled and semi-skilled labor forces in these countries brought higher wages and greater levels of middle-class privilege to them , spreading wealth and opportunity more equitably around the world . Continuing advances in digital technology reinforced this movement . The personal computer , the World Wide Web , and the mobile phone gave people unprecedented access to
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