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By Catherine Mann, Jacob Funk Kirkegaard

Info know-how (IT) was once key to some of the best total macroeconomic functionality of the U.S. within the Nineties excessive productiveness, excessive development, low inflation, and coffee unemployment. however it additionally performed a job in expanding profits dispersion within the hard work marketplace vastly lucrative staff with excessive schooling and abilities. This US functionality didn't occur in an international vacuum. Globalization people IT companies promoted deeper integration of IT through the US economic system, which in flip promoted extra vast globalization in different sectors of the U.S. economic system and exertions industry. How will the more and more globalized IT have an effect on US long term progress, intermediate macro functionality, and disparities within the US hard work marketplace? What guidelines are had to make sure that the us continues to be first in innovation, enterprise transformation, and schooling and abilities, that are must haves for US fiscal management within the twenty first century? This publication strains the globalization of the IT undefined, its diffusion into the USA financial system, and the clients and implications of extra huge technology-enabled globalization of goods and prone.

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Additional info for Accelerating the Globalization of America: The Next Wave of Information Technology

Sample text

Defining Information Technology The IT package used throughout the world has numerous components: hardware, software, services, and communications equipment and networks, just to name a few. IT and communications are often analyzed as a joint sector, but this book disaggregates the two sectors, not only addressing them separately but also making even further distinctions. Much of the first half of the book focuses on IT hardware—where it is produced, who buys it, and how it is used throughout the US economy.

Comparing country rankings for imports and exports points to the importance of two-way trade in IT and communications products, which is a sign of the globalization of production. For some countries, two-way trade goes along with domestic IT and communications spending, while for others that trade is divorced from domestic spending patterns. 1. But Singapore is a huge importer and exporter of IT goods. 1), even though it is an important two-way trader. On the other hand, Korea is the ninth LINKAGES BETWEEN US FIRMS AND GLOBAL MARKETS 19 02--Ch.

2b. Finally, China and India are both fast-growing markets for IT hardware spending, but their integration with globalized production of IT is quite different. China is the major two-way trader, but India does not appear in the top 25 traders (it is ranked below 40th). Despite its high rank as an exporter, China may not gain the most from its participation in globalized production. That is, even though China probably is the world’s most important production assembly platform for IT and consumer electronics products, it is not necessarily the one with the highest value added on domestic content.

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