Impact of Globalization

Julia Ritter
Econ122
6.23.13

In the economics news article, “America’s Economy Is Outperforming Rivals Because the U.S. Is Excelling at Globalization” by Robert Shapiro, it is voiced that the U.S engagement with foreign affairs promotes our economic growth. Shapiro argues that Globalization is now a driving force force for our economy.

            

“Last weeks revised report on the GDP showed consumer spending rising at twice the preceding three quarters. Housing investment is also at an increasing 14 percent annual rate. Following a 25 percent drop in home foreclosures compared to the first quarter of 2012 and many months of rising housing prices.” These positive reports are a good indication of the flow of our economony and we can thank globalization for paving the way.  Americans have always benefited from expanding markets for products as well as from lower input prices for our firms and more affordable goods for all of us.  The only downside that was reported was the lag in our Government. "If not for Washington’s misguided sequester cuts, tax increases and continuing layoffs by state and local governments, GDP would be growing at a healthy 3.5 percent annual rate."

It is due in part this turnaround, that credit goes to American Policymakers and business. They have been committed to globalization for the last two decades. Bill Clinton and President Obama are also key figures in this commitment to globalization as well. There have been major steps taken to increase trade and improve the economy. “Last term, he got Congress to approve new free trade pacts with South Korea, Colombia and Panama.” These actions have further our economy to a brink of a turnaround. It is a golden opportunity for the US to prevail. Globalization means that economic activity flows in both directions; although we may lose jobs to foreign workers, we also may gain jobs and boost economic activity.

I think that open trade has and will create many opportunities in the U.S by helping foreign economies become stronger and the demand in their goods and services will soar. The rise in foreign demand will be a window of opportunity for the U.S firms to compete to provide products for foreign imports. From what I have learned in Macroeconomics I know that it is important to capitalize on all possible sources of success and I believe Globalization has revolutionized the way American companies do business by making them multi-national corporations. The interlinked nature of these globalized economic systems permit all nations to benefit from the innovations from one another. Globlaizatoin induces promotes sharing and creates stability. I think that globalization is a great benefit to not only our world, but clearly to the economy itself. 

works cited:

Shapiro, Robert. "America’s Economy Is Outperforming Rivals Because the U.S. Is Excelling at Globalization." Http://www.thedailybeast.com. N.p., May-June 2013. Web. May-June 2013.