Question

Is the U.S. in a stronger or weaker economic and political position in the world because of globalization, or some of both? Why? What are the specific benefits to the U.S. from globalization? In what ways has globalization hurt the U.S.? How competitive do you think the U.S. will be relative to other countries over the next several decades? What will likely happen to absolute (rather than relative) standards of living in the U.S. in the years to come? Why?

Answer 1

It has been observed recently that the United States is in a stronger economic and political position in the world because of globalization because globalization has improved the the overall standard of living in the United States with increase in the investment in technological growth and research and development to remain competitive in the more globalized and open world today. Thus, the overall economic and political position of the United States has improved over the decades. The benefits of globalization in the United States include more job creation, more variety of products to consumers and increased quality of the products. This has helped mainly the consumers. It has also widened the market base of sellers and producers of goods produced in United States as the goods are exported to other nations. It has hurt some of the firms which are small in size and are unable to invest in technological improvement. Thus, mainly the less competitive firms are harmed in this globalized era.

It has been observed that the percentage of the GDP that the US spends on technological growth and research and development is high as compared to other nations of the world. This will increase competitiveness of the US and will help the country in becoming more efficient, Thus, the competitive ranking of the US relative to other countries will improve over the next several decades. This will improve overall growth of the United States and thus absolute standards of living in the US will rise in the years to come.