We Can’t Undo Globalization, But Can Improve It

Global flows of trade and investment add economic value, and dismantling systems that rely on globalization would reduce prosperity. “While the impulse to erect trade barriers is understandable given the pain experienced by workers in a range of industries and communities in recent years, it is not the way to create lasting growth and shared prosperity,” notes a Harvard Business Review article. “During the past decade, the United States was the world’s largest recipient of foreign direct investment, with nearly $2 trillion invested in a range of sectors, companies, and workers across the country.” Still, managers and politicians cannot ignore the costs of trade and globalization, and must support communities with transition. The authors recommend solutions: Job hunters should be willing to relocate. Companies should expand export and trade capability. Globalization is more digital in nature, and firms should explore opportunities. Retraining should be customized for fields and communities, and benefits should be portable across state lines. Expanding globalization’s opportunities, rather than limiting cross-border flows, would be the better approach to boosting prosperity. – YaleGlobal