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[...] States: who are the winners and losers of globalization? A. States benefiting from globalization Globalization is an important factor in the increase in wealth of rich countries. Synonymous with the intensification of commercial exchanges, it allows companies from these countries to access new markets and to relocate their production to regions where labor costs are lower. This generates productivity gains, an increase in company profits, a reduction in production costs and, in fine, an accumulation of capital. The most striking examples are undoubtedly those provided by emerging countries, such as China and India. [...]
[...] The appreciation of the exchange rate will lead to a deterioration in the competitiveness of other sectors of the economy, which can result in deindustrialization and/or a decline in economic conditions. The term 'Dutch disease' refers to the situation experienced by the Netherlands in the 1960s: after the discovery of new gas fields, the country's economic situation deteriorated following the pattern presented here." II. Within countries, which economic agents gain and lose from globalization? A. Enterprises and Multinationals Globalization has a contrasting effect on the economies of states. Some benefit greatly from globalization, while others remain on the periphery of it. [...]
[...] This curve shows, on the y-axis, the change in average income of different fractiles of the global income distribution between 1988 and 2008, which are represented on the x-axis. Milanovic compiled data from 120 countries for this study. Three observations can be made. First, the poorest households have become relatively poorer since their income has increased but at a slower rate than the average income. This is also the case for the upper-middle class, i.e., households with incomes between the 80 and the 95 percentile. [...]
[...] The Winners and Losers of Globalization Introduction At the beginning of the 2000s, the publication of the book by economist Joseph E. Stiglitz, The Great Disillusion, was particularly noted. Contrary to what certain neo-liberal economists who advocated for unlimited free trade claimed, globalization would be far from 'keeping its promises' according to Stiglitz's words. In other words, globalization, understood as the phenomenon of intensification of exchanges of goods and services at the international level much faster than the growth of the global gross domestic product at work since the 1980s, makes winners and losers. [...]
[...] This is true at the scale of states, but also within them. Certain companies, and especially multinational firms, as well as workers, among the most qualified, are from this point of view the real winners of globalization, to the detriment of the least qualified employees. It will be interesting to follow the consequences of Donald Trump's return to power in the United States: he seems, in fact, ready to open a new trade war, with China, but also the European Union and Canada, synonymous with a slowdown, or even a halt to the globalization process, which should have new redistributive effects . [...]
