A country’s competitiveness, productivity, and growth depend largely on its ability to acquire and use new knowledge and constantly upgrade the skills of its workforce. This is truer today than ever, as the people with the skills and innovative ideas needed by domestic economies are increasingly free to pursue opportunities the world over. Numerous countries also do not have educational systems capable of producing the workforces they need, and many more see their most highly skilled workers emigrate. Moreover, global imbalances have also made some countries rich in capital and scarce in labour, so that the natural progression for them is to exchange capital and labour.
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