Globalization and the rise of Asia
From MarketWatch: Globalization and the rise of Asia
By Paul Erdman
The groundwork for trade (part 1)
"The rise of Asia -- specifically China and India -- as the major challengers to American global dominance is no longer a matter of "if" but rather one of "when."
"The Anglo Saxon world took the lead in endorsing the free trade philosophy as expounded in the late 18th and early 19th centuries by such scholars as Adam Smith and especially David Ricardo. On foreign trade, it was Ricardo who developed the theory of comparative advantage. ... All this remains as true today as it did two centuries ago." Read more
So far the U.S. has benefited (part 2)
"As suggested in the first article in this series, we now stand at a new crossroad as we move towards total globalization with all the new problems and opportunities it entails.
They range from fears of growing domestic unemployment as a result of outsourcing to such nations as China and India, to worries concerning our dependence on foreign capital to finance both our trade and budgetary deficits."
"Not only that, but this process has also not resulted in the mass exportation of jobs, as many would have us believe. Despite the fact that imports are at all-time highs, our unemployment rate is only 5.4 percent. Furthermore, this absence of globalization exerting any major negative effect on employment in the United States is not likely to change in the future."
"Their conclusion: The biggest threat to U.S. hegemony stems not from the sentiment of foreign investors, but from protectionism and isolationism at home." Read more