Ups and downs of globalization

Advantages
Productivity increases faster when countries produce according to comparative advantage
Global competition and cheap imports keep prices low and inflation at bay
An open economy encourages technological development and innovation with ideas from abroad
Jobs in export industries pay more than those in import-competing industries
Free movement of capital gives the US access to foreign investment and keeps interest rates low

Disadvantages
Millions of US jobs lost to imports or production abroad; those displaced find lower-paying jobs
Millions of other Americans fear getting laid off
Workers face pressure for wage concessions under threat of having the jobs move abroad
Service and white-collar jobs are joining blue-collar ones in being vulnerable to moving overseas
US workers can lose their competitiveness when firms build state-of-the-art factories in low-wage countries, making them as productive as plants in the US

caucdenis  金钱 +15  奖励 2008-11-21 7:22:50