ABSTRACT

This chapter explains the new global economic system and the involvement of the United States in the global environment. It discusses the policy disagreements that have arisen over how the United States can best compete in the global economy, with particular emphasis on job loss in this country. The chapter describes the challenges faced by globalization in a political arena where nationalism, protectionism, and anti-global sentiment is gaining ground. In a global economy, where the exports and imports play a prominent role in the shape and growth of nations. Governmental leaders are championing the benefits of more open trade, foreign investment, relaxed corporate regulations, tax incentives for businesses, and the benefits of the capitalist market system as the keys to making globalization a success. The United States has been one of the major proponents of globalization, and since the 1980s, during the Reagan administration for a reformulation of the rules of economic development and financial expansion.