Foreward by Drew Palmer
"Globalization, Security and Economic Well-Being," an article by Stephen Carmel, explores the rapid globalization of supply chains and the shift towards “task-focused” trade. Specifically, innovation in the transportation and communications industries is interconnecting economies across the world, with broad implications for the way nations interact politically and economically. Carmel draws a parallel between today’s rapidly changing global economy and the late-19th century industrial revolution in America and the UK. In both cases, trade relationships need to be re-thought as complex interdependence changes the way trade partners produce and profit. Carmel identifies and corrects two major myths about globalization and trade that influence public policy and opinion but need to be corrected to accurately see the state of world trade.
1. In terms of value of total goods, global trade is moving away from sea shipping and toward air transportation
2. The "Made in America" label is increasingly irrelevant as production becomes more specialized and ownership of firms and capital become less restricted to one nation
Carmel identifies the fundamental changes that the digital economy is making to our old ways of thinking about production, supply chain management, and foreign trade policy. By exploring the increasing role of information, services, and specialized global production, he encourages readers to consider the complex factors of the new global market and how this affects public policy decisions and traditional metrics of economic activity.
Read Stephen Carmel's article here.