A bit more than half of survey respondents did not mention the economic dimension at all. A substantial number spoke in terms of values and norms. As one respondent said, globalization is "looking at things in terms of the world instead of a single country," while another said it is "all countries united, working for a better world.
Naturally there was concern about the threats to American jobs that come with the growth of international trade. In addition some mentioned the faster spread of diseases, such as AIDS, while others brought up the possibility that outsiders may gain too much power in the US, or that countries will lose their individual identities. Some participants bristled at the notion of global government. As one man said, "Globalization as trade is good.
Globalization as government is bad. Globalization Globalization in General Overall, it appears that Americans feel that globalization has a mixture of positive and negative impacts, with the positive ones moderately outweighing the negative ones. Forty-eight percent chose the one that said: Globalization has a positive impact because it enables the US to increase trade in services, manufacturing, agricultural and food products, it enables Americans to buy cheaper and more abundant consumer goods, and it creates more U.
Thirty-five percent picked the other statement: Globalization has a negative impact because it exploits the developing world, denigrates the world's environments, and results in U. Seventeen percent were undecided. Compensation: How much, and how delivered? There is an enormous chasm between the income losses felt by American workers on the wrong end of global integration and the solutions that are generally prescribed to compensate them for their troubles.
Ironically, even those advocating for workers harmed by globalization often end up demanding weaker medicine than the economics warrant. This is good economics and good politics, for a number of reasons. What it is not, however, is particularly protective of American living standards in the face of global integration. Another appropriate reform of globalization as currently practiced concerns the utterly non-trade-related clutter generally originating in demands from the corporate sector that finds its way into almost all trade agreements, including agreements for membership in the World Trade Organization.
Commitments to enforce U. Many advocates insist that the overweighing of corporate interests over all others has resulted in trade agreements that harm U. They also rightfully point out the irony: if you want free trade, why do you need all these agreements and protections? Like the push for worker protections, the campaign against corporate clutter in trade agreements is good economics and good politics, but not particularly protective of American living standards in the immediate future.
The first-order threat to the living standards of U. The terms of integration can lead to marginal improvements in outcomes for American workers maybe more substantial improvements over a long time horizon. More important, these terms have great influence on the effect of global integration on less-developed countries.
For these reasons, it is vital to get these terms right. Even when we do, however, the very fact that a comparatively rich and labor-scarce U. Go back to what economics teaches about trade: it increases national income while simultaneously redistributing it.
The way to do this is through compensation , and the political and ethical case for this compensation is crystal clear. Global integration is driven by conscious policy decisions made by the government, and its utterly predictable outcome is reduced growth in living standards for many, even most. Just as when a homeowner has his or her house claimed by the government to make way for a public highway, ethical politics demands that compensation be paid to those who have their individual circumstances damaged in the name of the collective good.
Many in the globalization debate have accepted this premise in principle, but the specific compensation measures they endorse are insufficient to meet thescale of the redistribution. Trade Adjustment Assistance TAA , perhaps the best known program for aiding workers damaged by globalization, provides expanded unemployment benefits and payments for training to workers directly displaced by imports.
An oft-recommended supplement to TAA is wage insurance, which would pay import-displaced workers some fraction of the difference between the wage they received at their old job and the wage at new employment.
This book documents just how much larger the costs of globalization actually are to workers on the losing end. These costs consist not just of jobs displaced by imports but also of the reduced wages for workers subsequently competing with the displaced. The pull of globalization on living standards will get even stronger in the future. The service sector, once thought to be largely insulated from global competition, is beginning to see more and more of its output traded across national borders accounting services and software programming, say.
The scale of the coming costs from globalization for workers on the losing end requires much more serious thought about the scale of policy responses. The enduring lesson of this age was that allowing business cycles to run their course was wasteful, not palliative, and that responsible governments should use policy tools to fight downturns.
In the first three decades of the postwar era, macroeconomic policy alone was able to smooth out much of the risk and volatility faced by American households. Hard times in this period generally came to them all at once, in the form of recessions, and good times were shared equally across the distribution of income and earnings.
The commitment to full employment provided much of the insurance against economic hardship that most households needed, both through high and rising wages and employer-based social insurance programs.
While this coverage of social benefits and family-sustaining employment was never universal nor in any way doled out fairly , for decades after World War II the trajectory at least was right and a larger number of workers enjoyed them as time passed.
But today, you can also see how large corporations similarly thrive as multinational businesses with offices and supply chains stretching around the globe. In the recent economy, trade agreements have become the cornerstones of globalization, creating and expanding networks for trade and infrastructure. Many large multinational companies like Amazon were singled out by Biden for taking advantage of tax loopholes to avoid paying federal income taxes.
The President said that he would raise corporate taxes and eliminate these loopholes and foreign tax credits to fund his plan. While governments focus on removing national barriers to promote global trade, they are also working on protecting local economies that could easily get disrupted.
Business owners also benefit by having access to a bigger market for their goods and services. The argument that globalization has lifted people in developing countries out of poverty is somewhat controversial because opinions differ as to the quantity — and quality — of the jobs created by globalization.
But the general wisdom is that globalization has increased job opportunities in capital-scarce, labor-rich countries, i. The right International PEO partner helps your company experience the benefits that globalization has to offer and quickly become a successful player in the global marketplace. Ready to go global? Contact us to learn more. Hello VelocityGlobal. Technology Overview Release Notes. Close Search. Table of Contents What is Globalization?
What Are the Benefits of Globalization? What Are the Challenges of Globalization? But those who decide to take on international expansion find several benefits, including: 1. Access to New Cultures Globalization makes it easier than ever to access foreign culture, including food, movies, music, and art. The Spread of Technology and Innovation Many countries around the world remain constantly connected, so knowledge and technological advances travel quickly.
Lower Costs for Products Globalization allows companies to find lower-cost ways to produce their products. Higher Standards of Living Across the Globe Developing nations experience an improved standard of living—thanks to globalization. Access to New Markets Businesses gain a great deal from globalization, including new customers and diverse revenue streams. Access to New Talent In addition to new markets, globalization allows companies to find new, specialized talent that is not available in their current market.
What are the Challenges of Globalization? Some of the hurdles companies face when going global include: 1. Payroll and Compliance Challenges Another common global expansion obstacle is managing overseas payroll and maintaining compliance with changing employment and tax laws. Loss of Cultural Identity While globalization has made foreign countries easier to access , it has also begun to meld unique societies together. Foreign Worker Exploitation Lower costs do benefit many consumers, but it also creates tough competition that leads some companies to search for cheap labor sources.
Global Expansion Difficulties For businesses that want to go global and discover the benefits of globalization, setting up a compliant overseas presence is difficult. Immigration Challenges and Local Job Loss The political climates in the United States and Europe show that there are different viewpoints on the results of globalization. How Globalization Changes Your Daily Businesses Operations Both the benefits and challenges of globalization change how a business operates in different ways.
Some operational changes companies should expect from globalization include: 1. Global Communication Challenges Before starting to branch out from headquarters, firms have to put an established internal communication plan in place since global employees likely work in a different time zone and have a different native language.
0コメント