ABSTRACT
This chapter looks at globalization from the perspective of economics and investigate what the implications of globalization might be for the European economy. The link with globalization that is typically made in this respect is that the decrease in economic growth results from the rise of the Emerging Economies (EEs) as exporters of manufactured goods and services. Globalization is less of a threat to the European economy and its policy-makers than is commonly understood. The three developments in industrialized countries that are typically linked to low-wage manufacturing imports from the EEs are: the slowdown in income growth; the process of deindustrialization; the deterioration of the position of low-skilled labour. The spur of economic growth in these emerging economies, based on the expansion of their manufacturing exports, has allegedly led to the decrease of economic growth in the Organisation for Economic Cooperation and Development countries.
