Challenges Of Globalization In The United States

Economic globalization has been one of the most powerful forces to shape the postwar world. Particularly, the amount of international trade in goods and services keeps breaking high record. The United States accounts for half the world’s economy after the second world war. There is no doubt on the U.S.’s established supremacy in global economy. Meanwhile, many developing countries like China and India grow at a incredibly fast speed, which arouses the U.S.’s concern. In order to develop sustainably, the U.S. policymakers should understand, anticipate and act decisively to align U.S. trade with the trends and forces sharping the global economy. Globalization has brought the U.S many challenges to sustain a competitive advantages. While the

economy, an expansion in the middle class could provide a tremendous economic stimulus. According to statistics, 50% of Americans live in middle-income households, 29% in lower-income households, and 21% in upper-income households. Firstly, the government can help the middle class to rise with a tax relief, which increase the after-tax wages and help the them manage rising costs. Next, in order to expand employment opportunities and assist the lower class to rise, it is necessary to nurture entrepreneurship. Appropriate government policies can have huge impacts on small-business growth. The government should make capital more easily available, which help American entrepreneurs to take loans that are devoting to start their business. Government agencies like Small Business Administration (SBA) is seeking to make progress on establishing an easier access to capital in order to create the foundation for a lively small-business sector. Moreover, the government should also encourage business freedom through lowering tax, eliminating unnecessary restrictions on trade, and subsidizing small businesses. It is essential to ensure all industry sectors are considered not just high-tech firms. Encouraging growth across all industry sectors including low, mid and high-tech firms leads to a greater and more sustainable small-business expansion. Encouraging new business formation creates a strong middles class,

On the one hand, it offers a larger economies of scale, which allow American to export goods and services abroad with lower tariff as well as gain access to more foreign goods and services. On the other hand, the outsourcing of jobs to developing countries like China and India has resulted in a job losses and trade deficits in the U.S. Therefore, having been exposed to increased international competition, it is essential to develop trade policies that benefit American workers. As free trade policies enable the market to allocate resources to their most productive activities, most people can expect to be better off with trade than without in the long run. U.S has sign many free trade agreements with other countries, which reduced the barriers for American exports. While the U.S. will face a more challenging competition, free trade would spur innovation. Policymakers should be very careful with drafting agreements, selecting partners and design trade agreement that protects investors and intellectual property rights. Beneficial free trade agreements eliminates trade barriers, develops a stable and transparent trading and investment environment, and maximize American profits in trading partner