Globalization has its detractors as well as supporters. Concerns have been expressed about the greater ease of fragmenting the production process so that more parts can be outsourced to a variety of countries. Highly developed regions worry about the possibility of greater unemployment or lower unskilled wage rates. Less developed regions are concerned that they may not possess a comparative advantage in the service link activities that promote fragmentation. The paper discusses these issues, with special emphasis on India and China.