This suggests that home country policy might best be used to neutralize the negative effects of
outward FDI, or even to influence how these effects will look. For example, it is likely that
increasing outward FDI from high-wage countries will have negative effects on unskilled
home country labor. Most of the simple jobs are likely to be outsourced, and the jobs that
remain at home will require substantially more skills than what the outsourced jobs did.
Restrictions on outward FDI in general are not likely to be good for the home country, for
reasons discussed above. However, it may be desirable or even necessary to introduce policies
targeting those groups that lose as a result of outward investment. Adult education and
training programs, as well as programs to encourage SME development (since SMEs are often
too small to outsource production activities) are examples of policy responses that do not
obstruct globalization and internationalization, but rather support the adjustment to a more
globalized economy.