Wednesday, March 5, 2008

Globalization is actually good for developed countries

The economist shows the data that demistifies the 'globalization is bad for western economies' cliche used over and over by US politicians, specially when campaigning in the depressed Mid-West:

"European consumers (ie, all Europeans when they are shopping) are big winners from globalisation, which has delivered cheap imports, held
down inflation and kept interest rates low. Despite the fuss about China and India, the EU's share of world exports rose slightly between 2000 and 2006. What is more, two-thirds of Chinese exports involve foreign brands, a good chunk of which are European. Nor does a “made in China” tag mean big revenues for Chinese firms.

In a recent speech defending globalisation, the EU trade commissioner, Peter Mandelson, cited a University of California study into who gains when an iPod is sold in America for $299. Only $4 stays in China with the firms that assemble the devices, Mr Mandelson explained. $160 goes to American companies that design, transport and retail iPods. A similar pattern holds for many European products."

Will any democrat have the courage to bring this issue in the upcoming US presidential election?

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