chapter  6
26 Pages

Global Forces on Local Economies

ByGerald L. Gordon

The nature of global impacts on local economies can be relative to inputs, political decisions, or changing patterns of taste and product demand. Perhaps the greatest economic concern with globalization is that the "haves" benefit while the "have-nots" can lose further ground. Many of the extra-national forces that impact economic growth are related to the cost of labor in the United States relative to other global markets. Political strife worldwide can wreak havoc on local economies across the United States. One of the most serious challenges to local economies comes from overseas competition. Lower prices as a result of lower wage rates represent only one form of competitive advantage. The quality of life in the region took a nosedive:b"National Guard units were being mobilized, not to face an external threat, but to deal with domestic discord due to the dire economic conditions. Pittsburgh is another great example of a city and a region that advanced its economic cause through development rather than simple growth.