Critique

Mercer Knott

6/26/13

Econ 122

Critique of “America’s Economy Is Outperforming Rivals Because the U.S. Is Excelling at Globalization”

 

            It has felt like a long time since we have had some uplifting news about our economy. The GDP report of the first week of the month shows that the consumer-spending rate has began to increase at twice the rate compared than that of the prior three quarters. Over the past 2 decades businesses in America have been striving to globalize in order to capture substantially larger markets. The United States goals of globalization have given us advantages over those who have not yet reached out to international trade. We have embedded ourselves so deeply in the international markets that we have become dominant figure throughout all industries.

            I believe by saying America will prosper from free trade with foreign countries you would be making a bold but valid argument. To many people around the world capitalism is the reason why they hate us. To others it is motivation to excel. The ability to carry out business in every corner of the globe allows for every region to prosper. Capitalism many believe is drive by greed and gluttony but other it is motivation and is creates a healthy economy. It provides incentive for businesses to try and eliminate each other. Competition is necessary for a healthy economy. It exposes the survival of the fittest side of the economy.

            Globalization does not inspire competition it also allows countries to reach out to each other when they are in need. Globalization of the economy has helped us aid other countries financially by supplying food, medicine, and protection for those in need. When President Bill Clinton was in office he made a point to execute all the steps necessary to open trade with foreign countries. Furthermore he passed the bill’s creating the World Trade Organization, NAFTA and created a global trading system. Ever since we created this global trading networks imports and exports have expanded significantly increasing our GDP. Our major partners in the international trade market reach from Europe to Japan all the way southeast to Latin America.

            All of the topics I have reached a complete understanding of but not because of my own intuition entirely. Michael has done a very thorough and good job touching on all topics of the article and presenting them in common terms. Without a clear interpretation of the material, one who is not fluent in macroeconomics terminology would surely find themselves lost. The key factors in globalization that I found Michael emphasized on the most important content in this article. An in depth understanding of the relationship between communication, trade and globalization is something that can be applied to many things in life.