Book contents
- Frontmatter
- Contents
- List of figures
- List of tables
- List of boxes
- Preface
- Glossary
- Suggested course structure
- Part I Introduction
- Part II Firms, trade and location
- Part III Capital, currency and crises
- Part IV Policy, dynamics and organization
- Part V Conclusions
- 13 Globalization: is it really happening?
- 14 Towards an international economics and business?
- Bibliography
- Author index
- Subject index
13 - Globalization: is it really happening?
from Part V - Conclusions
- Frontmatter
- Contents
- List of figures
- List of tables
- List of boxes
- Preface
- Glossary
- Suggested course structure
- Part I Introduction
- Part II Firms, trade and location
- Part III Capital, currency and crises
- Part IV Policy, dynamics and organization
- Part V Conclusions
- 13 Globalization: is it really happening?
- 14 Towards an international economics and business?
- Bibliography
- Author index
- Subject index
Summary
Introduction
As argued in chapter 1, we are interested in the economic consequences of globalization, where this term refers to the growing interdependency between nations and firms through international trade and factor mobility. Throughout the book, we have focused on international trade and capital mobility. Although labour migration does occur as well, both other forces are clearly dominant. In box 13.1, we briefly reflect on the labour migration issue. In chapter 3, we concluded that international trade increases welfare. In chapter 7, we reached a similar conclusion with respect to international capital mobility. At the same time, it became clear that globalization does not necessarily make everyone better off. In general, there are both winners and losers.
Box 13.1 Globalization and international labour migration
As explained in the preface (p. xxii), labour migration is not a main focus in our analysis of the global economy. In chapter 3 we briefly analysed labour migration. The effects are rather similar to international capital flows (see chapter 7). Still, at least in the public globalization debate, labour migration is a prominent issue, with increased fears in developed countries that domestic labour markets are becoming subject to fierce international competition. Low-skilled workers in particular worry about competition from low-wage countries. The discussion in the main text focuses on the role of trade in final or intermediate goods. This is not the only form in which globalization might affect the position of the low-skilled workers, however; migration can also be a factor. […]
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- Nations and Firms in the Global EconomyAn Introduction to International Economics and Business, pp. 375 - 396Publisher: Cambridge University PressPrint publication year: 2006