Economic Transformation and Political Reaction
A new industrial revolution is underway. Advances in information technology (IT) and telecommunications press on relentlessly, shrinking distances, eroding national boundaries, and enlarging the domain of the global economy. The world economy has become more integrated in the past few decades than it used to be. Trade is one striking example. In the United States, the share of exports in the output of manufactured goods has skyrocketed from 6 percent in the 1950s to nearly 20 percent in the 1990s. Fully 30 percent of U.S. economic growth since 1993 has been caused by expanding involvement in the global economy. The daily turnover on the currency markets now often exceeds the global stock of official foreign-exchange reserves. A global economy, in today's terms, is globalized production by international corporations.