Globalization In Retreat By Roger Altman Summary

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In the article, Globalization in Retreat by Roger Altman, globalization, which refers to a liberal flow of goods, services, workforce, capital, ideas and information spread across national borders, and its relevance in today’s society is discussed. Furthermore, the decline of global trade, capital flows and immigration are examined in relation to the housing and credit market collapse which affected the United States, Europe and Japan. In addition, the worldwide recession on developing countries is examined as focus is placed on declining levels of investments, financing and commodity prices. Altman states there is indication that the global economic crisis will be profound and extended while having extensive geopolitical consequences.
Roger
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In fact, an overabundance of capital flows were one of the key reasons of the financial crisis during this time and quite possibly the trigger for a future crisis as well. In 2007, before the global crisis began, three times as much money crossed the borders than does presently as banks who once experienced financial growth overseas, now choose to stay closer to home. Instead, today money crossing the borders is seen more through long term investments through factories or stakes in companies. But though globalization according to Altman is in retreat, research done by McKinsey Global Institute shows that globalization has done good for the world. Their research shows that because of global flows of goods, services, finance, data and people that the world GDP is 10% higher than it would have been had economics remained closed. However, globalization is still under attack. Globalization, an idea which was meant to bring prosperity to both the rich and poor, went south during the financial crisis. Though international trade flows have gradually improved over the years, global banks are still declining from cross-border lending while politicians are speaking to the fears of the public regarding migrant workers undercutting their pay. In turn, though global trade flows are growing, they have …show more content…
Though it narrowed inequality throughout many countries, it has deepened income inequality. Middle class during the early 2000s didn’t experience any form of income growth while those at the top of the global income distribution soared by nearly 70%. But in my opinion, globalization is not the reason for such an imbalance. After some examination it appears that technology could be viewed as altering both manual and cognitive duties which have amplified the demand for more competent workers. Those regions and industries which were hit hardest by the crisis have now begun to settle down and in turn, a support for globalization has been reignited. However, major organizational change needs to take place. Instead of fading, globalization is becoming a more digital occurrence. The idea of cross border digital flows were non-existent fifteen years ago, but as of today, the presence and influence of digital flow is much larger on global economic growth compared to that of traditional flows. In fact, the capacity of cross-border data flows has flourished since 2005 and is presumed to flourish even more over the next few years. This new form of digital globalization is more “knowledge intensive than capital or labor intensive.” Instead of shipping products overseas, broadband connections lessen the obstacles to entry while reinforcing competition and changing the way in which business is done. Although

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