Write a study blog on local economic development or the impact of globalization on U.S. economy and discuss
Write a study blog on local economic development or the impact of globalization on U.S. economy and discuss the role government played in the case .You may identify such a case as reported in newspapers, such as The Washington Post, Los Angeles Times, The Press-Enterprise or from other media of your choice (i.e. CNN, YouTube, BBS, etc.)
Your case blog should be approximately 500~1000 word long. You may insert pictures or videos to enhance your presentation. In you blog, you should briefly describe the case, identify the role government played, and the economic impact to the community.
THE IMPACT OF GLOBALIZATION ON U.S. ECONOMY
Globalization is an integration process wherein economies, both national and internationals, irrespective of the societal differences and cultures have become amalgamated with the help of a factor global network that entails, communication, transportation, trade and immigration (Ilmberger & Robinson, 2002). The notion of globalization was initiated in the word’s view following the fall of the Berlin wall. It was natural as many advocated for a one way of doing business across all nations. However, with time owing the varying national and economic systems the ideology seems to meet mixed reactions.
The impact of globalization on the US economy remains a topic for intensive scrutiny and discussion. The question concerning the response to public policies and future workforce trends serves as a good basis for discussion. The following is a review on the US economy with a reverence to whether globalization is an opportunity or a threat to the economy. The paper will also have an outlook on the role the US government has played in the line of the globalization impacts.
The impact of globalization on U.S. economy
To understand deeply the impact of globalization on the US economy, the paper will base its discussion on whether globalizations is an opportunity or a threat for the US economy?
Globalization is a two way traffic phenomenon, the economic activities flow entails both directions (Ilmberger & Robinson, 2002). The economy boosts its economy by gaining foreign workforce but in the same case lose jobs to foreign workers. According to the data relating to the US office work, the economy outsources less compared to the workforce it insources. On the same note foreign countries capitalize on the US workforce especially the professionals. A report indicates that in 2003, the US sold services worth $130 billion to foreigners compared to the $77 billion the economy bought from foreign countries (Bertho, 2008). This is one positive gain by the US to globalization.
Secondly, through globalization trends, the US has managed to generate foreign job growth even to higher levels than the domestic companies. It is reported that for the decade, 1991 to 2001, the US multinationals based overseas were able to create around 3 million jobs. They also produced 5-1/2 million jobs locally that meant a payroll of about 30% (Bertho, 2008). The advantage of the increase in foreign investment by the US multinational was that, the network entails hiring more workers from the US especially in the fields of, logistics, research, management, international IT and development.
Meanwhile a report by the commerce department also indicates that the US economy loses jobs due to their companies’ offshore activities. On the same line, the economy also gain when the foreign corporations invests here. A significant increase in the number of workers employed by these foreign firms was noted between the periods 1991 to 2001 (Bertho, 2008). This includes companies like Mercedes-Benz workers, Toyota and Samsung.
Secondly, through open trade, globalization has initiated growth in strength of foreign economy. The hidden advantage of these is the growth of markets for the goods and services. When the incomes of these countries grow, a phenomenon happens in a case where the demand for goods and services also grows. The demand is two way for the countries in need and those acting as suppliers thanks to their competitive advantages. When this happen, the US just like other nation can then compete to avail the products in need thus increase in productions and the general growth in the economy from the exports.
The third ideology of globalization entails offshoring (Brewer & Boyd, 2000). The US economy has greatly benefited from it has facilitated immense productivity growth. A case example in the spread of IT all over US thanks to the offshoring of computer related manufacturing companies like Dell, a Chinese computer factory. The step resulted in reduction of computer and telecommunication equipment prices throughout the US by 10% to 30%. The IT software and services were henceforth accessed at a relative lower price. The general effect was prevalent IT technology in the US and increased productivity which initiated economic growth.
For the period 2003-2004, the jobs situations in US were at a standstill (Bertho, 2008). The short term effect of the increased productivity in the nonfarm business sector was growing at a rate of approximately 4.8%. This was caused by the sudden increase in the efficiency in the general economy. The integration of expertise had rendered the economy sufficient with the status quo thus no new workers were being hired on net.
The ultimate advantage of this increase in productivity was the long run effect in which played an eventual role in raising the standards of living of the people of the US (Brewer & Boyd, 2000). This has been witnessed in the agricultural, manufacturing sectors and the service industry. The simple outsourcing, offshoring activities created a long-lasting foundation to the sectors of the US economy. And not to overlook the internet that has taken over the various procedures and duties execution in a much standardized manner, a great benefit of globalization to the US economy.
Meanwhile the US government and the composite policy makers have initiated terms of trade policies that affects the import and export sectors (Brewer & Boyd, 2000). Some have been favorable while others have faced serious criticism by economic analyst especially on importation of goods and services.
Globalization is a worldwide phenomenon whose impacts are far reaching. From the above review, the US economy is no different and with the integration of the government and composite.
Bertho, M. (2008). The Impact of Globalization on the United States: Culture and society, Volume 1. Westport: Greenwood Publishing Group.
Brewer, T. L., & Boyd, G. (2000). Globalizing America: The USA in World Integration. London: Edward Elgar Publishing.
Ilmberger, F., & Robinson, A. (2002). Globalisation. Tübinge: Gunter Narr Verlag.
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