Posted on : October 22, 2018
Views : 3
START VIDEO AT 04:00…………. Everyone knows that globalization is a process — driven forwards by falling trade and communication costs – that is integrating national economies around the world. This view is incomplete. However, globalization should be viewed as two processes, not one. The first is the traditional view where more goods crossing borders integrates economies. The second started with the ICT Revolution made is feasible for G7 firms to unbundle their factories and shift some production stages to low-wage nations. To coordinate the whole, G7 firms brought their firm-specific know-how along with the offshored stages. Flows of know-how, investment, training, services and people that used to happen only inside factories in G7 nations are now a part of international commerce. The resulting North-to-South flows of know-how transformed global economic realities – giving rise to the Emerging Economies, the commodity super-cycle, and much more.
  1. Prof. Bruce Greenwald (Columbia University)
  2. Prof. Joseph Stiglitz (Columbia University)
  3. Prof. Glenn Hubbard (Columbia University)
Source: research.chicagobooth.edu