Analyze the effects and impacts of globalization on the American economy in the 1980s and 1990s
Over the past three decades there has developed a large and increasingly viable global economic marketplace. Barriers to trade have decreased, disposable income in many 2nd and 3rd World countries has increased, despite the price of oil many transportation systems have become more efficient, and there is a burgeoning market for goods and services that go beyond boundaries. Combine this with the advances in telecommunication and virtual employment, and we see that the idea of a global economy is not such a pipe dream anymore (See: Sarah Anderson, et.al, (2005), The Field Guide to the Global Economy, New Press).
Having a global economy gave all businesses the ability to market their goods and services worldwide. In addition to marketing, many have developed partnerships and formed alliances, new manufacturing plants, and relationships. Prior to globalization (the global economy), the United States dominated the world-wide economy. However, in the past two decades or so, the American share of the global economy has shrunk to approximately 20%, with the trend expected to continue with the growth of many countries that have recently become industrialized (See: Joseph Stiglitz, (2007), Making Globalization Work, Norton).
For many in the United States, the idea of globalization is negative. Over the past few years, there have been several American companies who are outsourcing both products and services. They do this, they say, to remain competitive; yet, a result has been that many other organizations have had to close, or at least relocate much of their manufacturing to foreign countries. Unfortunately, the post-World War II axiom regarding the American worker being the best trained, highest skilled worker is no longer true (Edward Cohen, (2001), The Politics of Globalization in the United States, Georgetown University Press).
Does this mean that the United States can no longer compete in the global economy with either goods or services? It does not - it simply means that the older paradigm of Post World War II must evolve and become more "globally adaptive." What does the role of the United States need to be, then, in order to remain a leader in the 21st century economy?
Many scholars and economists ...
The solution provides a comprehensive analysis on the effects of globalization, its impact, influence and resulting changes brought to the US economy from the 80's to the 90's. Political and economic global analysis of said periods are provided to showcase trends and philosophies. To expand, references are also listed.