Offshoring as potential financial instrument in international relations

Abstract

This article problematize the conflict of two dimensions of offshoring. On the one hand, jobs and capital are moving through offshore entities in the states out of control of onshore _tates, and on the other hand, some countries accept this modality of business, even at the cost of establishing a special legal regime on the part of the territory. The initial assumption is that offshoring impacts the relations between the states, and represents a factor of globalization of a highly individualized value order. This assumption is subjected to the analysis from functional and phenomenological aspect, in terms of activities and opportunities it creates, as well as in the ways in which it supports the global system. In the aforementioned context we have also analyzed the offshoring related to the Republic of Serbia. The findings confirm that offshoring exceeds the economic context, since it causes concrete efforts of the onshore states, the host-states and of the international community. The obtained results lead to the conclusion offshoring has a determining effect in international relations, primarily as a challenge to the essential values of the states. From this stems the need to provide the balance between private and public interests on the international level.

Keywords

• offshoring
• offshore financial centers
• national economic system
• privacy
• national security