We live in an increasingly globalized world. But what does this mean? An introduction to Globalization.
Globalization: No Place To Hide
Globalization is the transfer of goods, people, capital, and information across borders. Over time new technologies have expedited this movement, raising the competition from emerging economies like China, and disrupting traditional industries like auto and steel. It is often blamed for many ills of the modern world: from inequality, job losses and the depression of wages, to social polarization and the recent surge in populism around the world.
But is the growing backlash against globalization justified?
In this episode, Professor Pankaj Ghemawat debunks the many myths and misconceptions surrounding globalization and lays out the case for why the costs are less and the gains are more than many may think.
The Future As Seen Through A Video Game
What will the world of trade look like in 15 years time? Given the pace of technological change and its impact on globalization, it’s pretty hard to tell. But, for an indication of the direction in which we are headed, a good place to look to is the digitalization of the global economy. And what better example of this new frontier of globalization than Fortnite - the video game played by nearly 250 million players around the world. The digital transactions these players make, together with other data flows, don’t always show up in the balance of trade figures, but they represent trillions of dollars of cross border value.
In this podcast, Stephonomics discusses what videos games like Fortnite can tell us about trade, jobs, and the world economy in the digital age.
Winner And Losers
How much is trade responsible for rising income inequality in the U.S., compared to other factors?
This is a question that has of late been keeping many economists busy as they’ve sought to figure out the social, as well as economic, impact of global trade. What it comes down to is this: the U.S. has a competitive advantage over other countries in higher skilled industries, such as software and engineering, but tends to import goods in industries demanding lower skilled labor - think shoes and textiles. This means that expanding global trade increases the divergence between these two types of workers and, in so doing, increases income inequality. But, it’s not that simple, since trade also helps to provide consumers with lower-priced, imported goods (hence the prolific ‘Made in China’ tag). As such, it can be seen to mitigate other inequalities.
Still confused? We were too until we listened to this episode by The Indicator.