Globalization

Globalization

Over the past several years, the U.S. economy has become more integrated into the global economy. Many companies throughout the world are managing worldwide production and distribution systems. “Changing patterns of world trade not only affect transport flows, they affect modes used. Products that are received by truck from domestic suppliers may be obtained by containership and doublestack train from overseas suppliers or, if their value is relatively high or delivery speed important, by air freight”. Trucking of some kind is involved in order to bring these shipments to their ultimate destination. However, as production moves more towards overseas suppliers, LTL trucking can expect to lose some market share to other forms of transportation. In response, LTL carriers should adapt and offer new and different services, such as intermodal service, air freight cartage and logistics services.

No steps should be taken to stem globalization of the U.S. economy. Globalization of the U.S. economy, while painful for some individuals and corporations has had a huge positive effect on the entire world. However, in order to protect individuals and preserve the environment, continued attempts should be made to create worldwide standards for such controls as environmental, fair labor and copyright laws.
America has the resources and responsibility to provide a social safety net for its citizens while attempting to be competitive in the worldwide economy. John F. Kennedy once said, “If a free society cannot help the many who are poor, it cannot save the few who are rich” . People expect their governments to serve their interests and to make decisions that will improve their chances to achieve a better existence. This statement applies to all the nations of the world. Policy makers must attempt to shape the forces of globalization in positive ways and work together to reduce inequalities within (and between) countries.

Capitalist ideology should be tempered by the fact that individuals, firms and especially national cultures, are more complex than the rational profit maximizers described by economists. For capitalism to succeed globally, it must be made bearable for the different cultures that are involved. Markets cannot exist independent of a society’s values. It is wrong for the most powerful economies to try and force other cultures to adopt beliefs or methods in order to participate in the global economy. Basic rules of fair trade should be all that are required. If not, we will have many countries, groups and powerful individuals who choose to stay outside the world economy. These outsiders may resort to violent social protest (such as the 9/11 attacks) or war to state their cases, achieve their aims, or simply vent their frustration. For disenfranchised non-participants in the world economy, the most effective way to get attention paid to their situations may be through violent protest or war.

All multi-national corporations and countries are global citizens with global responsibilities. The largest responsibility is to not unfairly exploit the workforce or environment of any country for economic gain. So that basic rules of fair play in business and government are followed, international organizations such as the WTO, World Bank and IMF have been created. So that these organizations aren’t controlled solely by business interests, non-governmental organizations such as The World Wildlife Fund, Amnesty International and Green Peace exist to act as watchdogs. This process of monitored globalization has been proceeding rapidly over the past few decades. Social protest (such as the riots in Seattle) is also a part of the process, influencing decisions made.

Fear of losing one’s job, health benefits and other insecurities that come with globalization have fueled a backlash against it in America. Some politicians try to capitalize on this fact and have been fairly successful in making this case with some Americans, that global trade threatens some American industries and workers. This assertion is correct. But, what is bad for an individual (or a company) is not necessarily bad for the country. This zero-sum view of the world implies that one country’s gain is another country’s loss. If this were so, global trade and investment would not flourish. These fear tactics work best with people lacking confidence in their own ability to compete and so in America’s ability to achieve economic growth through its own people, values, resources and institutions.

In the current recessionary business environment, our government has become more protectionist. I believe that this is a shortsighted step backwards, towards the isolationist policies of the past. America owes it to itself and the other countries of the world to work toward further trade liberalization. Raising barriers to achieve protectionist equality with trading partners will not benefit anyone. Many countries that fear the culture and economic power of the U.S. react with protectionist policies. We must be the free trade leader in these cases and unilaterally open our markets to imports from these countries. In time, the benefits of two-way free trade will become apparent to them. Meanwhile, we benefit from less expensive products and the ability to deploy our capital to its most productive uses. Unemployment may result in certain industries, but the long-term picture for our economy will improve. Our social safety net should help retrain and support those of us affected by the temporary job losses.

We must manage globalization carefully to reduce glaring inequalities and preserve the natural environment throughout the world. The example set by multi-national corporations and the leading industrial countries will determine the success of global capitalism. If globalization weathers the current recession, I believe it will be irreversible.

Trucking will continue to be required in order to bring products to their ultimate destinations. As production moves more towards overseas suppliers, LTL trucking can expect to lose some market share to other forms of transportation. In response, LTL carriers should adapt and offer new and different services, such as logistics services intermodal service and air freight cartage.