With the dawning of the 21st century, a new era is approaching at warp speed that is affecting every nation, every level of industry, every business, and virtually every individual. This new, post-Cold War era is dominated by globalization, a dynamic process that involves the integration of national markets through international trade (exports and imports), foreign direct investment (ownership and control of a company located in a foreign country), and portfolio investment (ownership of stocks, bonds, or other financial instruments).

Based on free-market capitalism and powered by advances in telecommunications (microchips, satellites, fiber optics, and the internet), transportation, and finance, globalization enables companies and individuals to establish relationships anywhere in the world.

In their book A Future Perfect, John Micklethwait and Adrian Wooldridge state that globalization also increases people’s freedom to shape their identities and sharpen their talents. Plus, it allows consumers to buy the best the world has to offer, while giving producers the tools to find buyers and partners worldwide. As a result, companies and individuals are empowered to generate new wealth in ways undreamed of just a few years ago.

But globalization is also forcing difficult changes similar to those introduced by the industrial revolution. Shifting from an agrarian society to an industrial economy compelled workers to leave farms in search of factory jobs. Industrialization created anxiety and fear, and demanded that workers learn new skills. And so it is today, but, the skills demanded are more complex.

Slowly but gradually, globalization has created, transformed, downsized, and streamlined jobs in the United States. This has forced workers to continually improve their job skills, add greater value, and increase their productivity. After years of struggle, these changes are bearing fruit for the vast majority of Americans. Stated by Thomas Friedman in The Lexus and the Olive Tree, “The relative decline of the United States in the 1980s was part of America’s preparing itself for and adjusting to the new globalization system, a process that much of the rest of the world is going through only now.”

But not all Americans are able to adapt. As a result, the primary challenge of globalization is to exploit the greater upside while minimizing the lesser downside. Since no one is in control, globalization can’t be turned off or slowed down. Consequently, it is essential for everyone to adapt to the best of his/her ability. To adapt more easily, individuals must pursue life-long learning, companies must nurture proactive global corporate cultures, and nations need to maintain open markets. To help achieve success, governments must encourage companies to expand internationally, and forge new trade agreements that improve access for U.S. goods and services.

This section appeared in the report International Trade Benefits New York, published on behalf of goTRADE New York and the Business Roundtable, 2001.
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John Manzella
About The Author John Manzella [Full Bio]
John Manzella, founder of the Manzella Report, is a world-recognized speaker, author of several books, and an international columnist on global business, trade policy, labor, and the latest economic trends. His valuable insight, analysis and strategic direction have been vital to many of the world's largest corporations, associations and universities preparing for the business, economic and political challenges ahead.




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