
Daniel Griswold
Globalization is a fact of life in 21st century America, and America’s small businesses should be allowed to take full advantage of its opportunities.
America’s economy is in the vanguard of one of the most significant advances in the world’s economic history. Economic globalization is integrating national markets through international trade and investment.
We are witnessing unparalleled developments in microelectronics, computers, telecommunications, transportation logistics, and finance. Combined with new global realities, these developments are changing the way we live and work.
Speculation is growing that the U.S. economy may have already slipped into recession. If the past is any guide, politicians on the campaign trail will be tempted to blame trade and globalization for the passing pain of the business cycle.
Rising unemployment and falling output can provide fertile ground for attacks on imports and foreign investment by U.S. multinational companies. But an analysis of previous recessions and expansions shows that international trade and investment are not to blame for downturns in the economy, and may, in fact be moderating the business cycle.
From 2002 through late 2007, the U.S. dollar declined 39 percent against the Canadian dollar, 38 percent against the euro, and 30 percent against the British pound, according to Deloitte Research. Interestingly, the impact is different than it would have been years earlier.
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