The purpose of this case study is to explore the impact of globalization on the U.S. economy as well as discuss the role that government had in this process. Globalization refers to a period of increased economic, political and social integration between nations and cultures around the world (Gillespie & Walsh, 2018). It has been a major force behind much of the economic growth, particularly in industrialized countries like America since World War II.
In order to better understand how globalization has impacted American economics, it is important to take into account when discussing its effects on local economies and their development. Historically, many states have sought out foreign investment from global sources such as multinationals or other countries’ governments in order to develop economically (Kilian et al., 2015). This foreign direct investment (FDI) can be used for infrastructure development projects such as roads, ports or educational facilities; job creation; technology transfer; capital formation; or any number of activities that stimulate economic growth within a region (Kilian et al., 2015).
One example where government involvement with FDI was essential was during the 1990s when President Clinton signed NAFTA into law allowing for free trade between Canada, Mexico and United States (Clinton White House Archives 2019). Prior to this agreement there were numerous restrictive tariffs put in place by each country inhibiting cross-border commerce but with this new partnership came an influx of FDI from private investors looking at new business opportunities available through NAFTA which allowed for more efficient transportation across borders and ultimately made trading easier than ever before (Clinton White House Archives 2019). This influx allowed businesses operating within these three countries access to markets they may not have otherwise seen due to tariffs prior and created jobs which generated revenue back into those respective economies increasing their GDPs while also stimulating further innovation due to competition among different companies throughout North America.
Write an original case study on local economic development or the impact of globalization on U.S. economy and discuss the role government played in the case
Another area where governmental assistance was instrumental in helping foster development was through tax incentives offered by state governments encouraging companies domestically as well as abroad investing locally instead of outsourcing operations overseas. Incentives like these create an attractive business environment given favorable taxation agreements which help keep profits higher thus offer greater returns on investments made by companies resulting in more FDI being poured back into American communities leading potentially lead upsurges(Wittman 2017)). As an example Apple Inc., one of America’s most iconic brands chose Austin Texas for their new corporate campus headquarters primarily based off promised tax breaks provided by then Governor Rick Perry despite several other cities offering more lucrative packages yet Austin still won out thanks promising lower taxes would mean higher profit margins ultimately being beneficial for both parties(Davis 2016)).
Overall it cannot be denied just how influential globalization has been for economic growth here in America brought about largely through FDI investments if it weren’t then perhaps our current GDP wouldn’t have risen so significantly over time from what once started stateside now international corporations are taking advantage of a worldwide market generating exponential amounts money flowing freely not just restricted within confines nation nor even continental boundaries spurring innovation advancement society alike having large ripple effect felt globally however all wasn’t easily achieved without government intervention playing role negotiating stopping protectionist measures passing legislation ensure rights reserved citizens while balancing wants needs businesses no doubt considerable work cut out them going forward maintain its newfound prosperity moving forward future generations benefit greatly advances made past ones same way we reap rewards hard labor today shared earlier examples serve highlight scale importance attached initiative show true power comes unity regardless distance culture origin must start somewhere seek build brighter tomorrow together.