Globalization “A Blessing” for West Europe

Globalization – by way of trade and off-shoring jobs – can eliminate inefficiency and add to the total number of jobs, reports the European Economic Advisory Group, an academic research group organized by the Ifo Institute in Munich. “Although the gains from trade have the side-effect of increasing inequality, the group recommends that governments avoid policies that try to preserve employment and wage equality in the face of overseas competition,” writes Chris Giles for the Financial Times. Instead, the government can promote policies that encourage worker training and security. Statistical models suggest that open trade correlates with job growth and increased employment, and the advisory group concludes that policies encouraging flexibility contribute to increased employment and innovation. – YaleGlobal