There was a time, at the end of the 20th century, when globalization was celebrated. We became more connected with the rest of the world. We could communicate and share information in real time without cost, nations benefited from strong imports and exports, and companies could improve their bottom lines by utilizing lower-cost suppliers and workers throughout the world.
These days, perhaps not so much. Globalization has become a target for both opportunity and opposition, largely responsible for higher unemployment in developed nations and the protectionism movement.While exposure to different cultures, values and beliefs offers benefits, there is revitalized interest in intra-country government spending on infrastructure and employment.1
It’s easy to see why the topic of globalization would be divisive: what looks like a threat to some looks like opportunity to others. However, no matter what perspective you have, we are here for you. Let us help you stay focused on your long-term retirement income goals, regardless of global and local economic events.
It is likely that, moving forward, globalization will be downplayed but not eliminated. Rather, at least one observer purports that countries, including the U.S., may expend more effort and resources on “regionalization” with neighboring countries.2
One negative consequence of globalization, combined with the 2007-2009 recession, was higher unemployment in the U.S. This unfortunate circumstance hit young people particularly hard.3 But interestingly, the phenomenon of young adults moving back home with their parents also is characteristic of a global trend. According to one report, the following percentages represent 15- to 29-year-olds who live with their parents in various countries:4
- · Italy, 80.6%
- · Greece, 76.3%
- · Slovak Republic, 76.2%
- · Spain, 73.6%
- · Canada, 30.9%
- · Denmark, 34.3%
- · Sweden, 35.1%
- · United States, 32.1%5
On one hand, globalization has served to generate more jobs in certain disciplines. The phenomenon is, and will most likely continue to be, responsible for the growth of jobs for market research analysts, interpreters and translators, cartographers and customer service representatives.6
On the other hand, regardless of how many jobs renegotiated trade agreements may bring back to America, most authorities agree there won’t be nearly as many traditional manufacturing jobs as in the past. Since much assembly line work is now automated, the manufacturing jobs of the future are more likely to require technology degrees with IT skills and knowledge.7
1 Sebastian Mallaby. International Monetary Fund. December 2016. “Finance and Development: Globalization Resets.” Vol. 53, No. 4. http://www.imf.org/external/pubs/ft/fandd/2016/12/mallaby.htm. Accessed Feb. 27, 2017.
2 Jonathan Web. Forbes. Dec. 21, 2016. “2017 Will Be a Year of Regionalization, Not
Deglobalization.” http://www.forbes.com/sites/jwebb/2016/12/21/2017-will-be-a-year-of-regionalization-not-deglobalization/print/. Accessed Jan. 1, 2017.
3 Alex Gray. World Economic Forum. Nov. 11, 2016. “Still living with your parents? You’re not alone.” https://www.weforum.org/agenda/2016/11/why-do-so-many-young-adults-still-live-with-their-parents-in-these-countries. Accessed Jan. 1, 2017.
5 Drew Desilver. Pew Research. May 24, 2016. “In the U.S. and abroad, more young adults are living with their parents.” http://www.pewresearch.org/fact-tank/2016/05/24/in-the-u-s-and-abroad-more-young-adults-are-living-with-their-parents/. Accessed Jan. 1, 2017.
6 Rob Sentz. Forbes. Sep. 27, 2016. “Three Jobs That Are Growing Because of Globalization.” http://www.forbes.com/sites/emsi/2016/09/27/three-jobs-that-are-growing-because-of-globalization/#66d3c499648c. Accessed Jan. 1, 2017.
7 Scott Simon. NPR. Dec. 10, 2016. “Economist Says Manufacturing Job Loss Driven by Technology, Not Globalization.” http://www.npr.org/2016/12/10/505079140/economist-says-manufacturing-job-loss-driven-by-advancing-technology-not-globali. Accessed Jan. 1, 2017.
The information contained in this material is believed to be reliable, but accuracy and completeness cannot be guaranteed; it is not intended to be used as the sole basis for financial decisions. If you are unable to access any of the news articles and sources through the links provided in this text, please contact us to request a copy of the desired reference.