IMPACT OF GLOBALIZATION ON THE AMERICAN ECONOMY

Impact of Globalization on the American Economy



Impact of Globalization on the American Economy

Introduction

Globalization has removed and reduced the barriers that prevail between the national borders in order to facilitate the flow of capital, labor, services and goods.

Given the accelerating globalization, the" intangibles "are a key source of competitive advantage. In a globalized economy where market opportunities are almost overcrowded, where capital is less a resource rare, where technologies are increasingly available and the cost of interactions drop dramatically, organizations must gain control of intangible competitive advantages. These are the specific skills and exemplary, the brand (reputation), networks of relationships that constitute the new comparative advantages. The importance of intangible resources is not new. This discussion will attempt to highlight how American corporations have been working in order to boost the American economy(Dixon, 1996).

Discussion

Globalization has intensified: the opening of markets, including capital, makes it less durable comparative advantages related to the possession of physical assets or the existence of entry barriers. The exploitation of these intangible assets depends on the implementation of intelligence and human creativity, thus, more than ever, the quality of individuals and companies are able to attract. This explains the war of "talent" managerial committed by large companies is their ability to anticipate and exploit the opportunities of globalization, but also to thwart risk, based largely on their ability to attract and develop talent. Thus, because they can exploit the physical assets, these intangibles are the comparative advantages of accelerating economic performance and stock market of the enterprise. Investors expect a contractor that uses its assets in all countries and in all occupations where they add value. Hence, the phenomenon of race for size current market globally (Appadurai, 1990).

At that time, international trade has been very poorly developed. With the 60-ies ...