As I noted earlier, the current revolution in telecommunications is another key factor in the accelerating pace of globalization. The challenges of globalisation for the extent of the trend toward integration is clearly reflected in the rising importance of world trade and capital flows in the world economy.
The international community will therefore need to continue providing substantial flows of development assistance.
But increased competition from imports is at most a secondary explanation for the decline in real wages of less skilled American workers. Last year in Osaka, the APEC leaders established a Business Advisory Council to institutionalize the critical role of business in APEC and to ensure that the views of the business community are fully considered in setting new polices.
That is why we need improved international rules on investment. Globalization presents governments with three principal challenges: The challenge for the future will be to ensure that these regional organizations are perceived as effective vehicles for the integration of African countries into the world economy, providing mutual support to their members in their reform efforts.
Economic cooperation is at the heart of the New Transatlantic Agenda we have launched together with leaders of the European Union. They will need to continue providing guidance and assistance to developing and transition countries seeking to reform their economies and to follow a market-led strategy of development.
It will also level the playing field for business. It is important to recognize that the potential for harmful anticompetitive behavior by global companies has been exacerbated by the trade, tech- nology, and industrial policies of the industrialized nations in recent years. Though not explicitly "protection- ist," these impediments generate additional political tension between nations and often encourage policy responses that impede political and economic adjustment to new global realities.
Success in open markets, and in attracting new investment and advanced technology, also means that the structure of economies is changing more rapidly than ever before. The international financial institutions will remain an important element of our economic architecture in coming decades.
The international financial institutions created at the Bretton Woods Conference -- the World Bank and the IMF -- show how the objectives of key parts of the international architecture can evolve over time.
The expansion of merchandise trade may also have lessened migrationary pressures. Governments have collaborated to work toward more mutually beneficial trade policies in many instances to promote cross-border business exchanges.
That will certainly not happen automatically. Most countries have moved ahead with trade and exchange liberalization, eliminating multiple exchange rates and nontariff barriers, and also lowering the degree of tariff protection.
Cultural Rifts Cultural barriers pose a huge threat to global businesses. In so doing, it has made the task of adjustment to the economic challenges and opportunities of globalization more difficult for all nations, although partic- ularly for more open national economies.
But such policies may not be enough on their own to restore growth in some of the most economically distressed countries. As large numbers of high- ly trained, low-cost engineers and scientists in countries such as India, the People's Republic of China, Indonesia, the German Democratic Republic, Czechoslovakia, and Hungary become increasingly linked with global prod- uct, service, and factor markets, the productive potential of available human assets is certain to increase.!
Share on Facebook The business arena has become increasingly globalized. Finally, I want to point out that business is an especially active participant in each of these regional arrangements."The Challenges of Globalization" Remarks by Joan E.
Spero, Under Secretary of State for Economic, Business and Agricultural Affairs, at the World Economic Development Congress, Washington, DC, September 26, Globalization creates opportunities for many countries to experience economic growth.
Economic growth is the increase in the amount of the goods and services produced by an economy over time. Third, the answer to those challenges is not greater protectionism. Instead, we need to provide greater support to displaced workers so they can obtain the skills needed to find new well-paying jobs.
We need to do better in preparing workers to deal with the challenges of globalization and technological change. "The Challenges of Globalization" Remarks by Joan E. Spero, Under Secretary of State for Economic, Business and Agricultural Affairs, at the World Economic Development Congress, Washington, DC, September 26, Challenges of Globalization Managers should also be aware of the best way to approach global demographics from a business to consumer perspective, taking an international product or service and localizing it successfully.
Globalization creates opportunities for many countries to experience economic growth. Economic growth is the increase in the amount of the goods and services produced by an economy over time.Download