Cold War.

Internationalism.

1. What is the “Cold War” and what are its main characteristics?

The cold war was a strategic, economical and ideological struggle between the USA
and the Soviet Union. It considered to have lasted from 1947 until the collapse of the
Soviet Union in 1991. The struggle was known as the Cold War as it did not involve
direct armed conflict between the two super powers involved. The cold war involved
economic pressure, selective aid, intimidation, propaganda, intimidation and
assassinations. The cold war also led to the largest arms race both conventional and
nuclear in history leading to the frightening possibility of a potential nuclear war, and
hence nuclear fallout.

2. Is communism a victim of globalization of world politics?

It is. With the fall of the Soviet Union, the number of Communist countries has
declined. Even Communist countries such as China are adopting the more effective
western style economies. Communism is really an experiment which was principles
had an idealistic view of how the world should be. However when put in practice
realist factors made these goals impossible to achieve. Communism is a philosophy
that was started by Karl Marx at the end of the 19th century, experimented on as a
Government system of the 20th Century that lived and died in this period.

3. Do you think that the Cold War is over?

For now the world is enjoying a period of relative peace and economic prosperity.
The Cold War in its definition mention above is over. It seems that with the collapse
of Communism the Soviet Union is no longer the super power it once was. The
possibility of another global conflict is possible. Today the global conflict of the
world is between nations and terrorists.

4. Who won in the war?

The United States eventually won, as Communism collapsed in the Soviet Union and
gave way to a western style democracy. This allowed Russia to have closer relations
with the United States. At the end of the day the Russians had just had enough of the
cold war and wanted to dispose of the Communists. This was because a large
percentage of the Soviet Unions spending went on developing military equipment and
the space race a very small portion was spent on developing infrastructure.

However if you look at the two economies, the US Economy has became a lot
stronger in recent years, while Russia’s economy is nowhere near as stable.
5. What happened after 9/11!

After the September 11 attacks that killed 2986 people, evidence was found linking
Muslim terrorist Osama Bin Laden leader of Al-Qaeda to the bombings. After this
event President George Bush declared war on Al-Qaeda and all other terrorist
organizations. Bush accused the Taleban in Afghanistan of granting asylum to Bin
Laden and proceeded with an invasion of Afghanistan. In this war Pakistan aligned
itself with the US who would clearly be the winning side, allowing them to use
Pakistan as a military base.

Numerous countries, including the UK, France, Germany, Indonesia, China, Russia,
Pakistan, Jordan, Mauritius, Uganda and Zimbabwe, introduced "anti-terrorism"
legislation and froze the bank accounts of businesses and individuals they suspected
of having al-Qaeda ties. Law enforcement and intelligence agencies in a number of
countries, including Italy , Malaysia, Indonesia, and the Philippines arrested people
they labeled terrorist suspects for the stated purpose of breaking up militant cells
around the world.

The bombings also had a short term effect on the US Economy, which steadily
recovered from this atrocity.

He also eventually declared war on Iraq who he claimed was a state supporting
terrorists.
GLOBALIZATION EFECT ON THE ECONOMY
By Andrew Pirie
Submitted to Vadim
Tuesday, 28/3/2006
Internationalism

The expanding of interactions and interdependence among the peoples and countries of
the world is involved in Globalization. Globalization can be a dependent and an
independent factor.

Globalization is a controversial term. Globalists claim we are entering a boundary less

world in which MNCs are making countries lose their national identities. Separate
national economies are being consumed under the force of the global market place (Cohn,
pg-11). Domestic producers face opposition from producers around the world in regard to
prices and design decisions (Samuelson & Nordhaus, pg. 32).

MNCs are a wonder of the modern age; they use globalization to their advantage by
generating foreign investment, trade and technology (Cohn, pg. 10-11).

Producers on the domestic market now must specialize in the production process itself at
different stages of production and decide carefully which countries they wish to include,
an excellent example is Barbie Dolls.
‘The plastic and hair come from Taiwan and Japan. Assembly used to be done in
those countries but has now migrated to lower-cost locations in Indonesia,
Malaysia and China. The molds themselves come from the United States, as does
the paint in decorating. China supplies labor and the cotton cloth used for dresses.
The dolls sell for $10, of which 35 cents covers Chinese labor, 65 cents covers
foreign materials, $1 covers Hong Kong profits and transportation the rest is
Mattel profit, marketing and transportation expenses in the United States’
(Samuelson, Nordhaus, pg. 32).

The second major component of globalization is the dramatic increase in the share of
national output devoted to imports and exports. The share of US national output has
doubled over the last century due to declining tariffs and other trade barriers. (Samuelson
& Nordhaus, pg. 32). The major causes of this integration is due to the pulling apart of
restrictions on capital flows among nations, cost reductions and innovations in financial
markets, particularly the use of new kinds of financial instruments.

Some writer’s dispute that the rise in global competitiveness is playing a part in the
formation of three economic blocs based in Europe, North America, and Japan/East Asia.
There are dissimilar opinions as to whether the relationship among these blocs will
become more cooperative or conflicting. (Cohn, pg. 10-11).

Financial Integration among nations has undeniably led to gains from trade, as nations
with productive uses for capital can loan from countries with excess saving. In the last
two decades, Japan has served as the world’s major lending country. Surprisingly, the
United States has been the world’s largest borrower – partly because of the low national
savings rate and partly because of the technological dynamism of its computer,
telecommunications and biotechnology industries.

Incorporation of goods and financial markets has produced impressive benefits from
trade in the form of lower prices, increased innovation, and more rapid economic growth.
But these benefits have been escorted by painful side effects (Samuelson & Nordhaus,
pg. 32).

One consequence of economic integration is the unemployment and lost profits that take
place when low-cost foreign producers put out of place domestic production. The
unemployed textile worker, the bankrupt soybean farmer – it is of no condolence in the
fact that consumers are enjoying lower prices for food and clothing. Those who lose from
increased international trade have become supporters of ‘protectionism’ in the form of
tariffs and quotas on international trade (Samuelson & Nordhaus, pg. 32).

Conclusion
In conclusion Protectionism although good for domestic producers trying to protect
themselves from bankruptcy is not essentially favorable to consumers.
It allows producers to control the economy somewhat. It is more towards the fixed
market economy seen in Communist nations. Advocates of free trade somewhat oppose
Protectionism as it does not give them the freedom in being able to experience cheaper
goods.

However trying to keep foreign goods out of a country is like trying to keep men on
horses (foreign goods) from attacking a city (country). You can build a tower with a wall
(tariffs and quotas) and keep them out but eventually some of them will get past that
tower and wall and break into the city. If a foreign product gets into the New Zealand
market even in a low quantity and is of high appeal, the demand for this product will
increase due to the scarcity of the item.

Protectionism is sometimes or often a disadvantage and does not always work towards
the domestic producers favor. For example with clothing if foreign clothing is less
available it might be considered rare and special and hence become trendier. New
Zealand clothing being common from flooding the market might be seen as common and
tacky.

The internet savvy people of New Zealand can easily buy goods online from overseas if
they are scarce on the New Zealand domestic market. This is when a second wall has
been built. There are restriction taxes on importing goods such as Amino acid into New
Zealand as it is in quite high demand on the New Zealand market and is a genetically
modified substance with little testing and considered an anaerobic enhancer. This product
would sell really well if it was available in New Zealand.

References

Cohn, T.H. (2005) Global political economy: theory and practice. (3rd ed.)
Simon Fraser University, US, Pearson/Longman.Samuelson, P.A., Nordhaus,
W.D. (2001) Economics. (17th ed.)
Yale University, US, McGraw-Hill/Irwin.
 Page 1

Globalization of IT
Services and White
Collar Jobs:
The Next Wave of
Productivity Growth
Catherine L. Mann
Catherine L. Mann, senior fellow, served at the
Federal Reserve Board of Governors, the Coun-
cil of Economic Advisers, and the World Bank.
She is coauthor of APEC and the New Economy
(2001) and Global Electronic Commerce: A Pol-
icy Primer (2000) and author of Is the US Trade
Deficit Sustainable? (1999). This policy brief is
based on Mann (2003) and Kirkegaard (2003).
© Institute for International Economics. All rights reserved.
Overview
Businesses throughout the US econ-
omy continue to transform even after
the technology boom has faded. The key
sources of this continuing transformation
are investment in the information tech-
nology (IT) package (hardware, software,
and business-service applications) and
reorientation of business activities and
processes to use both information and
technology effectively.
Globalized production of IT hardware
led to lower prices during the 1990s,
prompting IT investment and transforma-
tion. While IT was disruptive to businesses
and workers alike, its influence on them

International Economics
Policy Briefs
December 2003
Number PB03-11
and their successful response to that in-
fluence were key to higher trend produc-
tivity growth and the associated “trifecta”
of faster income growth, lower inflation,
and more employment.
Deeper transformation and wider dif-
fusion of IT throughout the US economy
will bring about a second wave of produc-
tivity growth. To that end, an international
value chain should increasingly produce
not only hardware but also software and
services, which will lead to a decline in the
prices of software and services, thus mak-
ing the overall IT package affordable for
more businesses. Moreover, the now less
expensive imported software and services
can be knit together by people in the Unit-
ed States who are close to the customer
and can combine and tailor these inputs to
the specific needs of businesses here.
The globalization of software and IT
services means that some IT jobs will be
done abroad. But as more sectors of the
economy and more businesses use the IT
packages in the United States, high-skill
jobs to design and tailor IT packages will
increase in the IT sector, and jobs de-
manding the skills to use these IT pack-
ages effectively will diffuse throughout the
economy.
This policy brief concludes that:
• Globalization of IT hardware produc-
tion is a model for the global evolution
of IT services and software. Although
technological change is the most impor-
tant driver of IT price declines, globalized
production and international trade made
IT hardware some 10 to 30 percent less
expensive than it otherwise would have
been. These lower prices translated into
higher productivity growth and an ac-

Page 2
Number PB03-11
December 2003
2
cumulated $230 billion in additional GDP (1995–
2002). Real GDP growth might have averaged
0.3 percentage points less per year from 1995 to
2002, if globalized production of IT hardware had
not occurred.
• As IT hardware prices have declined, the impor-
tance of IT services and software in the IT package
has increased from 58 to 69 percent of IT spend-
ing in 1993 and 2001, respectively. Over the same
period, growth in software and services spending
at 12.5 percent overwhelmed growth in hardware
spending at 6.7 percent. In the face of this de-
mand, and enabled only since the mid-1990s by
the Internet and standardization of methods, soft-
ware and services are now beginning to be pro-
duced globally. Just as for IT hardware, globally
integrated production of IT software and services
will reduce these prices and make tailoring of
business-specific packages affordable, which will
promote further diffusion of IT use and transfor-
mation throughout the US economy.
• When some production of software and services
is done abroad, some jobs will be done abroad
too. Recent efforts to quantify IT-related and other
white collar job loss “offshore” frequently use the
peak of the economic and technology boom as
the base for analysis, thus ignoring the business
cycle, trend decline in manufacturing employ-
ment, dollar overvaluation, and technology bust.
Cutting through the technology boom and peak of
the business cycle and comparing end-1999 with
October 2003, employment in architecture and
engineering occupations is stable, that in com-
puter and mathematical occupations is 6 percent
higher and in business and financial occupations,
9 percent higher.
• Going forward, broader diffusion of IT through-
out the economy points to even greater demand
for workers with IT skills and proficiency. In the
1990s, investment in IT propelled job growth
for workers with IT skills to twice the rate of job
growth in the overall economy. Over the next de-
cade, the Bureau of Labor Statistics (BLS) projects
that job growth to 2010 in occupations requiring
IT skills will be more than three times the rate of
job growth in the overall economy.
• Globalization of software and services, enhanced
IT use and transformation of activities in new sec-
tors, and job creation are mutually dependent.
Breaking the links, by limiting globalization of
software and services or by restricting IT invest-
ment and transformation of activities or by having
insufficient skilled workers at home, puts robust
and sustainable US economic performance at
risk.
IT and US Economic Performance:
Past as Prologue
Researchers and the media alike have scruti-
nized IT’s role in US economic performance—the
dramatic gains in the second half of the 1990s, the
recent recession, and the mixed signals in 2003.
Researchers have agreed that investment in IT and
transformation of business activities in response
to IT investment accounted for half or more of the
acceleration in labor productivity growth of the US
economy between the first half of the 1990s and the
second half through 2001 (Jorgenson and Stiroh
2000, Stiroh 2001). Overall, faster trend productiv-
ity growth supports higher sustainable GDP growth,
higher living standards, and more jobs, although it
does not eliminate the business cycle or its effect on
output and jobs.
With respect to jobs and IT, two factors have
supported superior US labor-market performance.
First, as businesses integrate IT into their activi-
ties, price inflation slows. Thus policymakers can
keep interest rates lower for longer without wor-
rying that fast economic growth might lead to a
price-wage spiral. This faster “speed limit” for the
economy translates into more room for job growth.
Indeed, the overall US unemployment rate fell below
4 percent in 2000 without generating inflationary
pressures.
Second, when firms across the economy inte-
grate IT into their operations, there is a substantial
demand for workers with IT skills, ranging from
basic IT literacy (“data entry keyers”) to much more
advanced IT skills (database administrators or com-
puter software engineers).
1

Some of these jobs are

at IT-producing firms, but more generally they are
spread throughout the economy as businesses inte-
grate IT into their activities. Through the economic
boom of the 1990s, jobs that demanded IT skills
Deeper transformation and wider diffusion
of IT throughout the US economy will
bring about a second wave of productivity
growth.
1

See the classification of IT occupations in table A5.4 in Digital

Economy 2002, US Department of Commerce.

Page 3
Number PB03-11
December 2003
3
(not just at IT-producing firms) increased by 22 per-
cent, double the rate of job creation in the economy
as a whole.
Globalized IT Production and Prices
What role did globalization play in the 1990s
scenario? Globalization of production through trade
and investment is important for IT’s contributions
to US economic success. Looking back, global inte-
gration of IT production accounts for perhaps 10 to
30 percent of the dramatic decline in IT hardware
prices, which was key both for increased invest-
ment in IT capital and to release financial resources
needed to transform activities within firms to use IT
most effectively.
There are sufficiently detailed data on two spe-
cific products to examine the role of globalization
in their price declines. For dynamic random access
memory (DRAMs), squeezing margins between pro-
duction cost and market price is an important fac-
tor in changing the pace of the overall trend decline
in price (Aizcorbe 2001). (Technology fundamentally
drives the trend decline.) Regression analysis con-
firms that when a gap opens between global capacity
and actual production, the decline in DRAM prices
accelerates. So, increased global capacity of foreign
firms and foreign investment by US firms accelerate
the decline in DRAM prices.
2

For personal comput-

ers (PC), cheaper semiconductors (including DRAM)
explain about half the decline in PC prices.
3

In addi-
tion, regression analysis indicates that an increase
in net imports of PCs is associated with a lowering of
PC prices. Thus, globalized production and imports
of PCs by US firms as well as foreign suppliers sig-
nificantly reduce the price of this ubiquitous busi-
ness tool.
4

Putting these estimates together, global

integration of the IT hardware industry accounted
for perhaps 10 to 30 percent of the decline in IT
hardware prices.
Lower IT prices promote IT investment and
transformation, which together support produc-
tivity and GDP growth. In this logic chain, how
important is the global link? Taking the midpoint
of the estimates, suppose IT prices fell 20 percent
faster from 1995 to 2002 because production was
globally integrated. These price declines supported
additional investment in IT, which translates into
productivity growth. Faster productivity growth
supported higher GDP growth. All told, the calcula-
tions suggest that productivity growth might have
been 2.5 percent instead of 2.8 percent for the
1995–2002 period and that annual real GDP growth
might therefore have been 0.3 percentage points
lower if global integration of IT production had not
occurred. The potential difference in GDP growth for
the seven-year period cumulates to a conservative
$230 billion (and perhaps twice this amount).
5

The Next Wave of Productivity Growth

Whereas productivity gains from intensive use
of IT are clear, large segments of the US economy
have not yet integrated IT fully into their business
operations. Continuing to reduce the price and
making the IT package easier to use and a better
fit for the organization that buys it are necessary to
2

Research suggests that squeezing margins between produc-

tion cost and market price can account for an average of about
15 percent of the decline in prices, although the year-to-year
range is huge—from no margin squeeze in some years (such
1995Q2 or 2000Q3) to squeezes of 20 or 30 percent in others
(such as 1998Q3 and 2001Q3). Margins can narrow because
of the business cycle (demand booms or falls) or because new
facilities come on line and increase supply. For the specific type
of DRAM, regression analysis confirms that when a gap opens
between capacity and production (i.e., capacity utilization falls),
the decline in DRAM prices accelerates. Based on the regres-
sion analysis, a 2.5 percentage point fall in capacity utilization
(say from 87.5 to 85 percent) is associated with an acceleration
of the pace of decline in DRAM prices from 2.5 percent (quar-
terly rate) to 10 percent (quarterly rate), as producers sell their
product into looser supply-demand conditions at relatively lower
prices.
3

Detailed research on the relationship between the prices of

PCs and semiconductors (DRAM as well as other types of chips)
finds that about 40 to 60 percent of the decline in PC prices is
due to the decline in semiconductor prices. About 30 percent
of the semiconductors that go into a PC are DRAM (Aizcorbe,
Flamm, and Khurshid 2002).
4

Net imports of PCs averaged $200 million per quarter over the
period, with a variation of about $50 million around that aver-
age. Regression analysis suggests that a $50 million increase in
net imports of PCs is associated with a lowering of PC prices of
about 10 percent in the quarter that more PCs entered the US
market.
5

Calculations are as follows: ‘X’ percent of price decline due to

globalization (times) price elasticity of IT investment (equals)
change in IT investment’s contribution to productivity growth.
Using the growth accounting framework adjusts GDP growth
and translates into billions of dollars “gained” due to globaliza-
tion of IT. To be conservative, only the relationship between
lower prices and greater IT capital is calculated (the effect on
productivity of so-called IT-capital deepening). However, there
is a positive association between IT capital and total factor
productivity, which together make up the principal components
of labor productivity. Based on simple reckoning on the relative
magnitude of IT capital deepening and total factor productiv-
ity growth, the ratio between the two could be 1:1. Thus, the
magnitude of GDP growth accounted for by globalization of IT
production could be twice the figures calculated here.
To put this figure into perspective, Kenneth Flamm (1997),
using data from 1975–95, calculated a cumulative gain of $375
billion coming from falling semiconductor prices. His data
covered the period before the pervasive use of IT throughout
nontechnology sectors.

Page 4
Number PB03-11
December 2003
4
deepen and spread more widely the use of IT and
the associated transformation of activities.
Making IT easier to use and a better fit for an
organization comes in part from increasing the
software and IT services components of the IT
package. During the 1990s, the pattern of spend-
ing on the components of IT packages changed to
increase the dominance of the market for software
and particularly IT services. In 1993, spending on
IT services and software was $115 billion whereas
that on hardware was $81 billion. Over the course
of the decade, the growth in spending on IT services
and software combined was 12.5 percent (nearly
twice the 6.7 percent growth rate seen in spending
on IT hardware) to end in 2001 (year 1 postbubble)
at $136 billion for IT hardware and $296 billion for
IT services and software. Spending on services and
software now dominates the US market, which is an
incentive to both reduce costs and offer new prod-
ucts.
6

Globalization of production, enabled by the

Internet, offers one way to do both.
Figure 1 shows the relationship between IT in-
tensity and contribution to aggregate productivity
growth in the United States by sector, along with
the size of the sectors in terms of GDP. The sectors
best known for their uptake of IT during the 1990s,
including wholesale trade, securities and commod-
ity brokers, depository institutions, and telecom-
munications are clearly identifiable. Retailing is
the only notable example of a large sector that did
not use IT particularly intensively in the sector as
a whole but experienced above-average productiv-
ity growth.
7

Three other sectors stand out for being

large, low IT intensive, and below average in terms
of productivity: health services, construction, and
the highly heterogeneous group of “other services”
(figure 1).
8

In addition, small and medium-sized enter-

prises (SMEs) generally have invested less in pro-
ductivity-enhancing IT. The size and distribution of
firms suggest that the sectors noted above (health
and construction) have particularly high popula-
tions of SMEs, where IT investment per employee
has been significantly less than at their large-firm
counterparts and drastically less than in durable
manufacturing, which has led the way in terms
of IT investment, transformation, and productivity
growth (table 1).
There is evidence that IT-based productivity
gains can be had in these “lagging” sectors. IT ap-
plications in health services, for example, show
dramatic results. Adverse drug events (ADEs) are
the human face of productivity in the health sector.
9

Besides causing an estimated 372,000 preventable

injuries and deaths per year, ADEs cost an extra
annual $1.56 billion to $5.6 billion in hospital ex-
penses per year.
10

Bar-coding of prescription medi-

cation and blood products, along with an electronic
medical record system, could prevent more than
80,000 ADEs annually in the United States. IT also
directly affects costs: Telemedicine improves patient
recovery, decreases readmission, and reduces costs
(by 80 percent) simply by allowing basic daily medi-
cal checks (weight, blood pressure, blood sugar,
etc.) to be performed regularly at home and then
transmitted to the central database by phone.
More generally, reasons ranging from cost to
culture to regulatory constraints help explain why
IT may be used less intensively in some sectors and
6

This increasing dominance of software and services is charac-

teristic of other industrial countries as well but is not observed
in the emerging markets, where the demand for hardware is
rising faster. See Mann with Kirkegaard (2003, table 1.1 and
figure 1.2).
7

Although the sector as a whole does not appear to use IT

particularly intensively, research shows that much of the pro-
ductivity gain in retailing comes from more productive estab-
lishments replacing less productive ones and that IT was an
important factor underpinning the more productive establish-
ments. See Foster, Haltiwanger, and Krizan (2002).
8

The values of ITEQ/FTE, a measure of IT intensity (from Digi-

tal Economy 2002, table A4.4), have been converted to natural
logarithm values to increase dispersion in figure 1. (ITEQ/FTE
stands for information technology equipment/full time equiva-
lent [worker].) A total of 55 industries, representing 78 percent
of US GDP in 2000 are represented in figure 1. Remaining GDP
is largely constituted by the real estate and government sectors
for which no IT intensity estimates are available. In figure 1, the
category “other services”, consists of SIC categories 83 (social
services), 84 (museums, art galleries, and botanical and zoologi-
cal gardens), 86 (membership organizations), 87 (engineering,
accounting, research, management, and related services), and
89 (services, not elsewhere classified).
9

Adverse drug events (ADE) is the term used to describe inju-

ries not caused by the underlying disease or condition of the
patient but rather from the drug therapy incurred by the pa-
tient. Although hard to infer direct productivity implications of
a reduction in ADE, fewer ADEs would, at a minimum, reduce
the need for remedial action, which would raise the productivity
of the sector.
10

See Agency for Healthcare Research and Quality (2001) and

McClellan (2003). All information originating from the Food and
Drug Administration is from McClellan (2003).
An essential ingredient of the second
wave of productivity growth coming from
globalization of software and IT services is
human capital in the United States.

Page 5
-0.25
-0.15
-0.05
0.05
0.15
0.25
0.35
0.45
-3.5
-3
-2.5
-2
-1.5
-1
-0.5
0
0.5
1
1.5
2
2.5
3
3.5
IT intensity of sector (ln of "ITEQ/FTE rank 1996")
A
n
n
u
a
la
v
e
r
a
g
ec
o
n
t
r
i
b
u
t
i
o
nt
oG
D
Pp
e
rF
T
Eg
r
o
w
t
h
,1
9
8
9
-
2
0
0
0
Construction
Other services
Health services
Retail trade
Wholesale trade
Depository institutions
Industrial machinery and equipment
Electronic and other equipment
Security and commodity brokers
Telephone and telegraph
Top-half industries by IT intensity
Bottom-half industries by IT intensity
Business services
Number PB03-11
December 2003
5
Figure 1: IT intensity and contribution to GDP per FTE growth, 1989–2000
Table 1: Capital expenditure per employee by industry sector and size of company, 1998
Sector/company size
Computer and peripherals
(dollars)
Total equipment
(dollars)
Share of total
employment (percent)
Durable manufacturing
Small and medium (0 to
499 employees)
942
4,562
38.5
Large (500+ employees)
1,463
20,291
61.5
Construction
Small and medium
112
3,250
89.6
Large
493
3,731
10.4
Health
Small and medium
231
1,284
43.1
Large
476
2,760
56.9
Source: US Department of Commerce, Main Street In the Digital Age, table 3.
ITEQ/FTE = Information technology equipment/full-time equivalent (worker).
Source: Bureau of Economic Analysis, Department of Commerce, Digital Economy 2002, table A4.4.
Size of bubbles indicates share of GDP by individual sector

Page 6
Number PB03-11
December 2003
6
by certain sizes of firms. Nascent globalization of
software and services, if it takes the pattern of price
declines that enable development of higher valued-
added and sector-specific applications (as has been
the case with globalization of IT hardware), could
help vault these hurdles. The result would be IT
diffusion to and more extensive transformation of
sectors and firm sizes that have lagged in terms of
productivity growth, as well as deeper integration of
IT software and services into the sectors that have
already enjoyed significant productivity gains based
on hardware. The resulting second wave of produc-
tivity growth could be even greater than the one
experienced in the 1990s.
Globalization of Software and Services and IT
Job Loss
The advent of the Internet, standardization of
methods, and creation of databases of information
and knowledge enable the disaggregation of soft-
ware and services into stages, which do not need to
be done contiguously but can instead be done glob-
ally. While this may contribute positively to produc-
tivity growth via price declines, as detailed earlier,
the specter of losing “white collar” IT jobs abroad
looms large. Frequently cited projections indicate
that millions of jobs will be lost to offshore workers.
What these projections ignore is that the globaliza-
tion of software and IT services, in conjunction with
diffusion of IT to new sectors and businesses, will
yield even stronger job demand in the United States
for workers with IT proficiency and skills.
Even now, stories that report dramatic move-
ment of jobs offshore need to be put into the current
economic perspective. First, these citations fre-
quently use the peak of the economy and technology
boom as the base for their analysis, thus ignoring
the business cycle, trend decline in manufacturing
employment, dollar overvaluation, and technology
bust.
11

Second, data on international trade do not

corroborate the frequent citations but rather point
to sustained international competitiveness of US
service providers.
Table 2 shows developments in the US labor
market from 1999 to October 2003. These data cut
through the technology boom and peak of the busi-
ness cycle but also clearly show the slow recovery in
employment so far. Data confirm disproportionate
and continuing employment losses in manufactur-
ing (2.7 million or 16 percent since 1999), including
production jobs in the IT sector. Among occupa-
tional categories, there similarly has been a trend
decline in “management occupations,” where 1.1
million jobs have disappeared since 1999 (a 14 per-
cent decline). In contrast, employment in the private
service–providing sector increased throughout the
period and is 1.5 percent higher in October 2003
compared with 1999.
Employment in white collar occupations related
to IT or deemed vulnerable to IT-enabled interna-
tional trade, is stable and recovering (architecture
and engineering occupations) or higher (computer
and mathematical occupations is 6 percent higher
and business and financial occupations, 9 percent
higher) in October 2003 compared with 1999. With-
out a doubt there is offshore job activity, and the
domestic labor market situation remains subdued,
but job growth in many white collar occupations at
home deemed particularly at risk to offshore opera-
tions is expanding, not contracting. (The full range
of occupations categorized by the BLS is shown in
the appendix table.)
A second piece of evidence on the continued
strength of the US services sector comes from inter-
national trade data (figure 2). The continued strong
competitive showing of US net exports of services
is particularly striking given the appreciation of
the dollar from 1995 to 2002 and slow growth in
the United States’s major markets in the industrial
11

There are no publicly available data on jobs “lost” to workers

in foreign countries. Publicly available data show the number
of people in occupations defined by occupational class and
by sector. When the number of jobs falls in a particular cell
of this matrix, there is no way to determine whether that job
was regained in another cell of the matrix (different occupation
or different sector) or whether this job no longer exists, either
because the job has moved abroad or because technology has
made it obsolete.
Frequently cited projections indicate that
millions of jobs will be lost to offshore
workers. What these projections ignore is
that the globalization of software and IT
services, in conjunction with diffusion of
IT to new sectors and businesses, will yield
even stronger job demand in the United
States for IT-proficient workers.

Page 7
Number PB03-11
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7
Table 2: The current employment situation (thousands of workers at end of period)
Sector/occupation
1999
2000
2001
2002
Current,
October 2003 (P)
Total nonfarm private
employment
109,972
111,639
109,302
108,642
108,644
Manufacturing
17,280
17,177
15,706
15,020
14,540
Private service providing
85,393
87,066
86,216
86,319
86,692
Total IT occupations
a

6,136
6,383
6,061
5860
n.a.
of which
Nonproduction
5,637
5,876
5,643
5492
n.a.
Production
499
507
418
368
n.a.
Management
8,063
7,783
7,212
7,092
6,940
b

Business and financial

4,362
4,619
4,677
4,772
4,774
b

Computer and mathematical

2,620
2,933
2,826
2,773
2,775
b

Architecture and engineering

2,506
2,576
2,489
2,411
2,505
b

Unemployment rate
(16 years and above)
Annual average (percent)
4.2
4.0
4.8
5.8
6.0
c

End of period (percent)

4.0
3.9
5.8
6.0
6.0
n.a. = not available
(P) = Preliminary estimate.
a. IT occupations as defined by the US Department of Commerce in Digital Economy 2002, annual data.
b. The October 2003 number has been generated by using the rate of change from October 2002 to October 2003 in the
unseasonally adjusted data from the BLS Current Population Survey, series LNU02032453 (management), LNU02032454
(business and finance), LNU02032455 (computer and mathematical) and LNU02032456 (architecture and engineering), which
covers the same occupational categories but uses a different survey format than does the BLS Annual Occupational Employment
Survey.
c. January to October 2003.
Source: Bureau of Labor Statistics, Annual Occupational Employment Survey, monthly current population and establishment data.

Page 8
Number PB03-11
December 2003
8
0
20
40
60
80
100
Fitness trainers and aerobics instructors
Occupational therapist aides
Physical therapist assistants
Audiologists
Physical therapist aides
Home health aides
Computer and information systems managers
Medical records and health information technicians
Physician assistants
Social and human service assistants
Medical assistants
Computer systems analysts
Personal and home care aides
Database administrators
Desktop publishers
Network systems and data communications analysts
Network and computer systems administrators
Computer software engineers, systems software
Computer support specialists
Computer software engineers, applications
Percent change
Figure 3: Percent change in employment in occupations projected to grow fastest, 2000–10
Note: Black bars are IT-related jobs as defined in Digital Economy 2002.
Source: Bureau of Labor Statistics, Occupation Outlook Handbook.
Figure 2: Balance of trade in US other private services trade categories (millions of dollars)
$0
$10,000
$20,000
$30,000
$40,000
$50,000
$60,000
1997
1998
1999
2000
2001
2002
2003(1)
Affiliated services: US parents, net
Affiliated services: US affiliates, net
Unaffiliated services: Financial services
Unaffiliated services: Business, professional, and technical services
Other private services
a

Annualized from 2003 Q1 and Q2 seasonally adjusted data.

Source: Bureau of Economic Analysis, Department of Commerce, US International Transactions table 3, US private services
transactions.
a

Page 9
Number PB03-11
December 2003
9
countries abroad. The trade surplus in other private
services (OPS) increased from $42 billion in 1997
to about $50 billion in 2003Q1. OPS includes trade
in services that might be vulnerable to being done
abroad, including financial services and business,
professional, and technical (BPT) services, both of
which post strong positive net balances.
Moreover, examination of the “affiliated” trade
category (i.e., intrafirm trade between parent and
subsidiary) reveals that multinationals (both US
and foreign) continue to do their headquarters’
service activities in the United States. Even as US
multinationals expand overseas, global integration
of their activities has not yielded a fall in their “affili-
ated parent, net” balance. Even more striking, for-
eign multinationals with US subsidiaries are more
prone to integrating their service transactions in
the United States rather than at their headquarters
abroad (“affiliated services: US affiliates, net”).
What are the prospects going forward for jobs
that demand IT skills, some of which increasingly
could be done abroad as part of global integration of
software and IT services? The BLS Occupation Out-
look Handbook (OOH) details job projections (figure
3). Three of the 10 largest numerical increases in
job categories (a total of about 1.2 million jobs of
the projected 22 million in the US economy by 2010)
are projected to be in computer-related occupations
(computer support specialists, computer software
applications engineers, and computer software
system engineers). Among the top 20 occupations
in terms of growth prospects projected by the BLS,
10 demand IT skills.
12

All of these are frequently

cited in anecdotes as ripe for being sent abroad
(software engineers, network administrators, desk-
top publishers, computer and information system
managers). Considering all occupations projected
to 2010 by BLS, 13 percent of the total number of
jobs created in the economy will be IT-related, and
the growth in these occupations will be 43 percent,
compared with an economywide job growth rate of
13 percent.
13

Not all job categories are projected to expand.

Jobs for bank tellers, switchboard operators (in-
cluding answering services), and telephone opera-
tors are all projected to shrink by 20,000 to 60,000
jobs each. But this contraction is as much due to
automated teller machines and voice-answering
technologies as due to jobs going offshore. Jobs for
insurance claims clerks, word processors, and sec-
retaries also are projected to drop; these could be
candidates for offshore job creation, replacing jobs
at home. What is notable about all these jobs is that
they are at the low-wage, low-skill end of the job
spectrum that currently demands IT skills.
14

The point is not that no jobs will be done abroad

but rather that higher-paid jobs demanding IT skills
are projected to grow very quickly in the United
States. Will US workers be prepared to make the
move into those jobs? Right now, it is imperative
that adjustment assistance be made available to the
white collar workers hurt by international competi-
tion just as trade adjustment assistance aids those
in the manufacturing sector. The new program of
wage insurance will help some IT workers find new
jobs but not necessarily those with white collar
skills.
15

A partnership between the private and public

sectors and a real commitment to effective skill-
building are crucial. For many years, tax policy has
12

Other important job categories in terms of magnitude of

openings are registered nurses, retail salespeople, office clerks,
general mangers, teachers, and laborers.
13

How accurate have BLS projections of job growth been in

the past? Evaluation of the projections in the 1988–2000 Oc-
cupational Outlook Handbook (OOH) is based on a six-category
classification (centered around “about as fast as average” and
ranging from “much faster than average” to “decline† ). (As in the
current OOH, each category is associated with specific percent-
age growth rates.) Of the 338 occupations evaluated, 187 had
growth rates within one category of the projection category.
There is even greater accuracy in the “extreme” categories of
“much faster than average” and “decline,† with projections being
“within a few thousand workers or a few percentage points.” See
Alpert and Auyer (2003).
An international value chain should
increasingly produce not only hardware but
also software and services, which will lead
to a decline in the prices of software and
services, thus making the overall IT package
affordable for more businesses.
14

See discussion of wage profile of job occupations in Kirkeg-

aard (2003).
15

As implemented in the trade promotion authority legislation,

workers older than 50 years and earning less than $50,000
at their previous job can receive half of the difference between
their old and new wage for up to two years. The objective of this
program is to encourage workers to get back to work as soon as
possible and for the new employer to provide on-the-job train-
ing, which has proven to be more effective that government-fi-
nanced classroom training. The program is limited, however, by
age as well as by type of job lost (only manufacturing jobs are
covered). For more on wage insurance, see Kletzer and Litan
(2002).

Page 10
Number PB03-11
December 2003
10
been used to promote capital investment through
the investment tax credit. An essential ingredient to
the second wave of productivity growth coming from
globalization of software and IT services is human
capital in the United States. The time has come to
integrate human capital into investment tax credit
policies. The US workforce needs the skills and
adaptive capabilities to succeed in a global labor
market, where fewer and fewer occupational catego-
ries can be shielded from foreign competition and
where global competitors are spending even more
on education relative to their income levels than is
the United States.
16

Going forward, the globalization of software and

IT services and the movement of some jobs abroad
reduce the price of “components.” (Software and
services have components just as hardware does.)
In the United States, the jobs will be to design, tai-
lor, and implement IT packages for a broader range
of industries and size of firms as well as to deepen
the integration of IT into firms that already have
it. Suppose that global integration of software and
services yielded price declines of 20 percent (us-
ing the average of the results from the IT hardware
research). Since the demand for software and IT
services is more price elastic than for IT hardware,
the potential increase in investment, productivity
growth, and job creation from the globalization of
IT services and software is even greater than that
experienced in the 1990s from the globalization of IT
hardware. Indeed, this second wave of productivity
growth and the associated economywide gains de-
pend on deeper integration of IT and transformation
of more sectors of the US economy and the workers
who can engender and partake of these changes.
Conclusion
Effective use of IT through investment and trans-
formation of activities was key to US economic ex-
pansion during the 1990s. Globalization of IT hard-
ware played an important role in that expansion.
In order to return to the economic performance of
the 1990s, the early IT adopters will have to deepen
IT investment and transformation, and the process
of IT investment and transformation will have to
be extended to the sectors of the US economy that
did not participate in the productivity growth of the
1990s—among them, health services, construction,
and small and medium businesses.
The IT package has been increasingly weighted
toward software and IT services rather than hard-
ware. There is increasing incentive as well as need
to provide more cost-effective and superior IT soft-
ware and services. Part of delivering on that strategy
involves a new wave of globalization of IT in software
and services, which will contribute to the lowering
of the prices of software and services. Globalization
of software and services will entail some jobs be-
ing done abroad but will result in lower prices for
the overall IT package. The resulting greater use
of IT and transformation of activities throughout
the economy will propel the United States toward
a second wave of faster productivity growth that at
the same time yields a greater demand for IT-related
jobs spread throughout the economy.
In the end, globalization of software and services,
enhanced IT use and transformation of activities in
new sectors, and job creation are mutually depen-
dent. Breaking the links, by limiting globalization of
software and services or by restricting IT investment
and transformation of activities or by having insuf-
ficient skilled workers at home, will put the entire
prospect for robust and sustainable US economic
performance at risk.
16

Research and data suggest that middle-income countries are

investing relatively more in engineering and technical human
capital than are rich countries (Sequeira 2003).
Globalization of software and services,
enhanced IT use and transformation of
activities in new sectors, and job creation
are mutually dependent. Breaking the links
will put the entire prospect for robust and
sustainable US economic performance
at risk.

Page 11
Number PB03-11
December 2003
11
References
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Reducing and Preventing Adverse Drug Events to
Decrease Hospital Costs. Research in Action, issue
1. AHRQ Publication Number 01-0020 (March).
Rockville, MD: AHRQ. www.ahrq.gov/qual/aderia/
aderia.htm
Aizcorbe, Ana. 2001. Price Measures for Semicon-
ductor Devices (revised January 2002). Federal
Reserve Board of Governors. Photocopy.
Aizcorbe, Ana, Kenneth Flamm, and Anjum Khur-
shid. 2002. The Role of Semiconductor Inputs in IT
Hardware Price Decline: Computers vs. Communi-
cations. Finance and Economics Discussion Series
WP 2002-37. Washington: Division of Research &
Statistics and Monetary Affairs Federal Reserve
Board (June).
Alpert, Andrew, and Jill Auyer. 2003. The 1988-
2000 Employment Projections: How Accurate Were
They. Occupational Outlook Quarterly (Spring): 5.
Flamm, Kenneth. 1997. More for Less, The Eco-
nomic Impact of Semiconductors. Semiconductor
Industry Association (December).
Foster, Lucia, John Haltiwanger, and C.J. Kri-
zan. 2002. The Link Between Aggregate and Micro
Productivity Growth: Evidence from Retail Trade.
NBER Working Paper 9120. Cambridge, MA: Na-
tional Bureau of Economic Research. (August).
Jorgenson, Dale W., and Kevin J. Stiroh. 2000.
Raising the Speed Limit: US Economic Growth
in the Information Age. Harvard University. http:
//post.economics.harvard.edu/faculty/jorgenson/
papers/dj_ks5.pdf.
Kletzer, Lori G., and Robert E. Litan. 2002. A Pre-
scription to Relieve Worker Anxiety. International
Economics Policy Brief 01-2. Washington: Institute
for International Economics.
Kirkegaard, Jacob. 2003. Stains on the White Col-
lar. Institute for International Economics. Photo-
copy (June).
Mann, Catherine L., with Jacob Kirkegaard. 2003.
Globalization of Information Technology Firms and
the Impact on Economic Performance. Institute for
International Economics. Photocopy (May 2).
McClellan, Mark. 2003. Technology and Innova-
tion: Their Effects of Cost Growth of Healthcare.
Testimony before the Joint Economic Committee,
July 9.
Sequeira, Tiago Neves. 2003. High-tech human
capital: Do the richest countries invest the most?
B.E. Journals in Macroeconomics. Topics in Macro-
economics 3, no. 1, article 13.
Stiroh, Kevin J. 2001. Information Technology and
the U.S. Productivity Revival: What Do the Indus-
try Data Say? Federal Reserve Bank of New York
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The views expressed in this publication are those of the author. This publication is part of the
overall program of the Institute, as endorsed by its Board of Directors, but does not necessarily
reflect the views of individual members of the Board or the Advisory Committee.

Page 12
Number PB03-11
December 2003
12
Table A.1. Detailed data on occupations
Number of workers
BLS occupation
code
BLS major occupational category
1999
2000
2001
2002
11-0000
Management
8,063,410
7,782,680
7,212,130
7,092,460
13-0000
Business and financial operations
4,361,980
4,619,270
4,676,690
4,772,120
15-0000
Computer and mathematical
2,620,080
2,932,810
2,825,820
2,772,620
17-0000
Architecture and engineering
2,506,380
2,575,620
2,489,040
2,411,260
19-0000
Life, physical, and social science
909,530
1,038,670
1,067,750
1,078,630
21-0000
Community and social services
1,404,540
1,469,000
1,523,940
1,576,980
23-0000
Legal
858,320
890,910
909,360
934,850
25-0000
Education, training, and library
7,344,830
7,450,860
7,658,800
7,772,470
27-0000
Arts, design, entertainment, sports,
and media
1,551,600
1,513,420
1,508,730
1,503,680
29-0000
Healthcare practitioners and technical
6,001,950
6,041,210
6,118,880
6,185,020
31-0000
Healthcare support
2,970,780
3,039,430
3,123,160
3,173,400
33-0000
Protective service
2,958,730
3,009,070
2,958,050
2,993,490
35-0000
Food preparation and serving related
9,687,970
9,955,060
9,917,790
10,067,080
37-0000
Building and grounds cleaning and
maintenance
4,274,200
4,318,070
4,275,660
4,262,880
39-0000
Personal care and service
2,556,920
2,700,510
2,801,640
2,919,280
41-0000
Sales and related 12,938,130
13,506,880
13,418,770
13,339,570
43-0000
Office and administrative support 22,562,480
22,936,140
22,798,460
22,754,570
45-0000
Farming, fishing, and forestry
463,360
460,700
453,010
451,140
47-0000
Construction and extraction
5,938,860
6,187,360
6,239,250
6,124,600
49-0000
Installation, maintenance, and repair
5,140,210
5,318,490
5,322,980
5,215,970
51-0000
Production 12,620,920
12,400,080
11,270,180
10,726,670
53-0000
Transportation and material moving
9,538,820
9,592,740
9,410,340
9,395,000
Total economy 127,274,000 129,738,980
127,980,430
127,523,740
Note: Categories in italics represent occupations deemed by Forrester to be at risk of offshoring.
Source: Bureau of Labor Statistics (BLS), national employment and wage data from the Occupational Employment
Statistics survey by occupation, 1999, 2000, 2001, and 2002.

Page 13
Number PB03-11
December 2003
13
Table A.1: Detailed data on occupations (continued)
1999–2000
2000–01
2001–02
1999–2002
–3.5
–7.3
–1.7
–12.0
5.9
1.2
2.0
9.4
11.9
–3.6
–1.9
5.8
2.8
–3.4
–3.1
–3.8
14.2
2.8
1.0
18.6
4.6
3.7
3.5
12.3
3.8
2.1
2.8
8.9
1.4
2.8
1.5
5.8
–2.5
–0.3
–0.3
–3.1
0.7
1.3
1.1
3.1
2.3
2.8
1.6
6.8
1.7
–1.7
1.2
1.2
2.8
–0.4
1.5
3.9
1.0
–1.0
–0.3
–0.3
5.6
3.7
4.2
14.2
4.4
–0.7
–0.6
3.1
1.7
–0.6
–0.2
0.9
–0.6
–1.7
–0.4
–2.6
4.2
0.8
–1.8
3.1
3.5
0.1
–2.0
1.5
–1.7
–9.1
–4.8
–15.0
0.6
–1.9
–0.2
–1.5
1.9
–1.4
–0.4
0.2
Precent change
Position of Terrorism
For The Kingdom of Morocco
Original transcript translated from French
2004

The Permanent Mission of the Kingdom of Morocco to the United Nations presents its
compliments to the Chairman of the Committee and has the honor to transmit herewith
the fourth report of the Kingdom of Morocco on the implementation of Security Council
resolution 1373(2001).

The Kingdom of Morocco wants to repeat and confirm its moral position of strongly
condemning all forms of terrorism, regardless of their origin, nature or cause.

Morocco remains determined resolutely to combat all terrorist movements that exploit
religion for political purposes.
We are using all means necessary at domestic, regional and international levels to prevent
terrorism and to prevent attacks on its interests or those of other countries, being planned,
financed or perpetrated from its territory.

Morocco was deeply affected by terrorism on the occasion of the attacks at Casablanca
on 16 May 2003, and is well aware of the challenge posed by this threat.

Strengthening

Morocco plans to strengthen smooth transparency in politics and the development of

democratic rule, which the criminal attacks against us planned to destroy.
We wish to make the democratic process final and irreversible. The reform of electoral
law began in 2002. In which we held local and legislative elections which were declared
fair by international and national observers. We plan to lower the voting age to 18.
By giving our people more opportunity we can decrease discontent and unhappiness
through poverty which can lead to terrorism. We also would like to promote economic
and social development.

We also plan to improve national identity, Morocco is known for its openness and
tolerance. The cultural, educational, religious and media campaigns will seek to instill the
virtues of openness to otherness and modernity in the people of Morocco.

We plan also to improve our literacy rate. We plan to enhance cultural understanding as
we are a multi cultural society; we promote Arabic, the mastery of foreign languages and
the promotion of local cultures such as Amazigh (Berber) culture.
Such understanding and respect for other cultures will limit terrorist activity, as it will
lower religious and ethnic hatred. Our King Mohammed VI has begun to reconstruct
religious bodies in our country and promotes a tolerant and progressive interpretation of
religious texts.
Activities

Morocco is under going counter-terrorism activities to mobilize against fanaticism and

uproot terrorism. The Kingdom of Morocco has therefore adopted a multidimensional
proactive and reactive approach, combining suppression, through all-round mobilization
of the security and justice apparatus and prevention, through political, economic, social,
cultural, educational, religious and other reforms.

The enforcement of law will help ensure that anti-terrorist activities are undergone.

Laws

As well as the relevant rules of Moroccan law (Criminal Code, Code of Criminal
Procedure, code on civil liberties, business law, and so on), there are specific laws, some
of which contain provisions that overrule ordinary law.

i) Act 3-03 on combating terrorism, strengthens the general Criminal Code, and
increases the applicable penalties for offences committed through terrorist
activity. It also strengthens the necessity to protect human rights. It limits the
duration of police custody to 48 hours, enforces the obligation to inform
family members, provide the use of possible medical attention, supply a
lawyer to the accused and limit the period of pre-trial determination.

ii) Morocco also dissuades illegal immigration and emigration and is careful of
the entry and stay of foreigners.

iii) A new law has also been passed with a task force of police to find out and
punish those responsible for money laundering. This also will help prevent the
financing of terrorism.

iv) An intelligence department has been setup which will work in conjunction
with the UN Security council to adapt measures to prevent terrorism.

International Level

Morocco has participated and approved these conventions since 1963 Convention on
offences and certain other acts committed on aircraft.

• Convention for the suppression of unlawful seizure of aircraft

• Convention for the suppression of unlawful acts against the safety of civil
aviation
• Convention on the making of plastic explosives for the purpose of detection
• Convention on the prevention and punishment of crimes against
internationally protected persons
 • Convention for the suppression of unlawful acts against the safety of maritime
navigation
• Protocol for the suppression of unlawful acts against the fixed platforms
located on the continental shelf
• Convention on the physical protection of nuclear material
• International Convention for the suppression of the financing of terrorism
• International convention against the taking of hostages
• International convention for the suppression of terrorist bombings

Implementation Measures

A bill on combating money laundering, which can finance terrorism was passed.
Monetary penalties ranging from 1 to 5 million dirhams without prejudice to sentences
which maybe imposed on managers or agents implicated in these offences.

Terrorist acts are subject to severe penalties, which are doubled when the offences
involve the use of facilities available as a result of the exercise of a professional activity,
when an offence is repeated or when an offence is committed by an organized gang.

Power is granted to judicial authorities by Morocco’s code of Criminal procedure to order

the freezing or seizure of funds suspected of being connected with the financing of
terrorism. It also grants power to open and monitor accounts. Lending institutions now
have to identify not only their clients but also the beneficiaries of financial institutions.

The Moroccan authorities provide international cooperation through Interpol.

Morocco has bilateral agreements with Algeria, Belgium, France, Italy, Libya,
Mauritania, Poland, Portugal, Romania, Spain, Tunisia, Turkey, and the United States
Books to refer to

Lexus and the Olive Tree – Thomas Friedman

World on Fire – Amy Chua
Globalisation Book
Internet Articles
Student World Assembly

Expulsion UN
1) not paying debts in time
2) Aggressive action

Comparative advantage – globalization by having an advantage on the world wide market

in a specific product due to expertise and restrictions, and low prices.

Speeches

Globalisation
Cold War
Dichotomy
Integration vs Fragmentation
Good vs evil
free trade (3rd world take over) prevent decolonisation
US Govt
foreign policy 12:25 p.m.

7.8 for my speech

Books

Lexus & The Olive Tree - Thomas Friedman

World on Fire - Amy Chua
Globalisation book
Internet Articles
Student world assembly
Internationalism

NATO
UNION Coal
UNION Steel Production
Cosmopolitan Model Democracy
French motto - equality, brotherhood, freedom
pg 185-021 Internationalism
1920 League of Nations
Liberalisation - realism of today

US Main Goals
Imperialism/Unilateralism