7 - [Globalization and Economic Integration] Expanding the Production Possibilities Curve

Shifting Alignments, Cultural Considerations, and Economic Effects

The impact of globalization on economies is that it increases the production possibilities curve. It seems that the future of globalization is the ability to align based on values rather than location. This is even seen in media studies where individuals' identities are based on values rather than location. For instance, emerging and small artists distribute and collaborate on music digitally as opposed to in person. There are many artists who collaborate with each other across the globe by sharing media online via emails or instant messages. "The end of globalization (and the beginning of something new)" by Mike O'Sullivan discusses what I just described in the context of economics: the shift to relationships between individuals, businesses, and governments being based on values as opposed to location. In music production, prior to the widespread use of internet-based collaboration today, some artists have gone to such great lengths as to collaborate by shipping partially-complete records to each other through the U.S. Postal Service. Although individuals and businesses are not explicitly mentioned, I believe it still applies to these two groups. Initially, when I saw the topic of this writing assignment, I thought it would cover how COVID has led to a backlash against globalization. I also thought it would discuss the growing resentment in the United States and around the world against globalization, as seen through the rise of populism and far-right politics.

Mike O'Sullivan's Insightful Exploration

Mike O'Sullivan, author of The Leveling, and former Chief Investment Officer at Credit Suisse Private Banking, says, "If the era we're leaving was characterized by a connected world trying to shrink and come together on the basis of economic goals and geography, the new world order will be defined by rival, distinct and different ways of doing things, and ultimately collaboration based on values, and this new world order is very much a work in progress". I agree with his ideas after researching his other work. I think that COVID has accelerated the phenomenon of individuals and businesses using digital tools such as the internet in place of being in the same physical location. It is more convenient and opens up a wider breadth of options for individuals, businesses, and governments. However, I'm not sure if it's appropriate to call it the "end of globalization," as it seems individuals, businesses, and governments are still operating globally.

Challenging the Myth of Globalization: Peter Alfandary's Perspective

The next topic discussed is "The myth of Globalisation" by Peter Alfandary, an international lawyer. He states, "I do believe that we have to stop believing in the quasi mythical powers of globalization and we have to start remembering how very very easy it is to misunderstand each other. We live in paradoxical times." Although I'm not sure if I fully understood his TED Talk, I agree with this statement. People should always try to understand those from different cultures when working with them, as it makes it easier to accomplish goals.

The Economic Implications Explored by Joseph Stiglitz

Joseph Stiglitz, an American economist who received the Nobel Prize in Economics in 2011, says in his paper, Globalization and its New Discontents, "The effects of the economic pain and dislocation that many Americans are experiencing are even showing up in health statistics. For example, the economists Anne Case and Angus Deaton, this year’s Nobel laureate, have shown that life expectancy among segments of white Americans is declining." As mentioned earlier, I think people who are affected by globalization have turned towards populist and far-right politics. This is discussed by Dani Rodrik in his paper "Why Does Globalization Fuel Populism? Economics, Culture, and the Rise of Right-Wing Populism".

In Reflection and Conclusion

To conclude, I believe that the impact of globalization on economies is that it increases the production possibilities curve. The future of globalization seems to be the ability to align based on values rather than location. Each video and reading addresses a different aspect of globalization: Mike O'Sullivan discusses how partnerships are formed based on values as opposed to location; Peter Alfandary discusses the differences in culture and how that stymies globalization; and Joseph Stiglitz discusses the effects of globalization on economies.