Globalization is not the only – or even the actual – story of the global economy over the past four decades. In The Globalization Myth: Why Regions Matter, author Shannon O’Neil shows that the world has become more international but not nearly as global as the narrative of economic globalization suggests. As companies, money, ideas, and people went abroad over the last forty years, more often than not they moved and traded regionally rather than globally.

Charting the rise of three major regional supply chain hubs in Asia, Europe, and North America, O’Neil demonstrates how the countries that traded with countries nearer-by gained a competitive edge. By contrast, for nations without strong commercial ties to their neighbors, workers and consumers are, to a large extent, left on the ends of global supply chains, relegated to sending out raw materials and bringing in final goods. These goods from distant shores compete with, rather than support, local manufacturers, leaving these nations in the economic slow lane.

Despite the rise of a North American manufacturing platform, the United States continues to be less connected with its neighbors than its Asian or European commercial rivals. To keep up with and face Asia’s expansive reach and Europe’s industrial prowess, U.S. politicians, entrepreneurs, and workers need to recognize that the United States requires deeper regional ties. International trade deals and other policies that recognize this reality would allow the United States to preserve and expand its domain in the global marketplace.

The Globalization Myth provides a comprehensive path forward for the United States and other countries looking to get ahead in the global economy. The answer is not isolation, nor is it unfettered globalization. Rather, embracing and deepening regional ties is a way to succeed in an internationally connected and competing world.

The book concludes by offering students in International Business and International Relations a series of discussion and essay questions such as “Does industrial policy work? When should it be used? Discuss the costs and benefits of industrial policy for national economies”.

(Shannon K. O’Neil. https://www.cfr.org, 16.11.2022. Adaptado)

European companies dealing with the most alarming energy crisis and inflation in four decades are bracing for a fresh shock: wage inflation and the increasing threat of worker actions. The theme has emerged this earnings season, with many of Europe’s most prominent companies warning that prices may rise further in 2023 amid tough wage negotiations in a tight labor market. A season of strike action is already in full swing across Europe as workers – who now suffer the most dramatic real income decline in years – push for higher pay.

With productivity almost flat and a number of countries in the euro area, as well as Britain, entering recession, the wage demands could put additional pressure on company’s bottom lines. “We’re watching this very closely,” Nestlé SA chief Executive Officer told Bloomberg Television. “In most industrial European countries those negotiations for ’23 will unfold during the winter and first quarter.”

Some companies are already dealing with walkouts. For example, in November 2022, as red banners and whistling filled the air, Airbus SE employees marched out of an assembly plant in Bremen, Germany, in a bid to secure an 8% pay rise. Negotiating on behalf of 3.9 million manufacturing workers, IG Metall (Germany’s most powerful workers’ union) argued that wage hikes were needed to meet rising energy bills. In response, the employers’ association has insisted there simply won’t be extra profits to pass down the line, since “there will be no growth that can be distributed”. Yet, Germany’s recent decision to hike the minimum wage by 22% could encourage unions while feeding broader inflation.

With inflation still rising, there’s more pressure than ever on companies to reduce their spending. But holding down wages can backfire, and the next several months will show whether pay is one cost that companies can’t afford to cut.

(Dasha Afanasieva et alii. Europe’s Wageflation hangover. Bloomberg Businessweek, 14.11.2022. Adaptado)

European companies dealing with the most alarming energy crisis and inflation in four decades are bracing for a fresh shock: wage inflation and the increasing threat of worker actions. The theme has emerged this earnings season, with many of Europe’s most prominent companies warning that prices may rise further in 2023 amid tough wage negotiations in a tight labor market. A season of strike action is already in full swing across Europe as workers – who now suffer the most dramatic real income decline in years – push for higher pay.

With productivity almost flat and a number of countries in the euro area, as well as Britain, entering recession, the wage demands could put additional pressure on company’s bottom lines. “We’re watching this very closely,” Nestlé SA chief Executive Officer told Bloomberg Television. “In most industrial European countries those negotiations for ’23 will unfold during the winter and first quarter.”

Some companies are already dealing with walkouts. For example, in November 2022, as red banners and whistling filled the air, Airbus SE employees marched out of an assembly plant in Bremen, Germany, in a bid to secure an 8% pay rise. Negotiating on behalf of 3.9 million manufacturing workers, IG Metall (Germany’s most powerful workers’ union) argued that wage hikes were needed to meet rising energy bills. In response, the employers’ association has insisted there simply won’t be extra profits to pass down the line, since “there will be no growth that can be distributed”. Yet, Germany’s recent decision to hike the minimum wage by 22% could encourage unions while feeding broader inflation.

With inflation still rising, there’s more pressure than ever on companies to reduce their spending. But holding down wages can backfire, and the next several months will show whether pay is one cost that companies can’t afford to cut.

(Dasha Afanasieva et alii. Europe’s Wageflation hangover. Bloomberg Businessweek, 14.11.2022. Adaptado)

European companies dealing with the most alarming energy crisis and inflation in four decades are bracing for a fresh shock: wage inflation and the increasing threat of worker actions. The theme has emerged this earnings season, with many of Europe’s most prominent companies warning that prices may rise further in 2023 amid tough wage negotiations in a tight labor market. A season of strike action is already in full swing across Europe as workers – who now suffer the most dramatic real income decline in years – push for higher pay.

With productivity almost flat and a number of countries in the euro area, as well as Britain, entering recession, the wage demands could put additional pressure on company’s bottom lines. “We’re watching this very closely,” Nestlé SA chief Executive Officer told Bloomberg Television. “In most industrial European countries those negotiations for ’23 will unfold during the winter and first quarter.”

Some companies are already dealing with walkouts. For example, in November 2022, as red banners and whistling filled the air, Airbus SE employees marched out of an assembly plant in Bremen, Germany, in a bid to secure an 8% pay rise. Negotiating on behalf of 3.9 million manufacturing workers, IG Metall (Germany’s most powerful workers’ union) argued that wage hikes were needed to meet rising energy bills. In response, the employers’ association has insisted there simply won’t be extra profits to pass down the line, since “there will be no growth that can be distributed”. Yet, Germany’s recent decision to hike the minimum wage by 22% could encourage unions while feeding broader inflation.

With inflation still rising, there’s more pressure than ever on companies to reduce their spending. But holding down wages can backfire, and the next several months will show whether pay is one cost that companies can’t afford to cut.

(Dasha Afanasieva et alii. Europe’s Wageflation hangover. Bloomberg Businessweek, 14.11.2022. Adaptado)

European companies dealing with the most alarming energy crisis and inflation in four decades are bracing for a fresh shock: wage inflation and the increasing threat of worker actions. The theme has emerged this earnings season, with many of Europe’s most prominent companies warning that prices may rise further in 2023 amid tough wage negotiations in a tight labor market. A season of strike action is already in full swing across Europe as workers – who now suffer the most dramatic real income decline in years – push for higher pay.

With productivity almost flat and a number of countries in the euro area, as well as Britain, entering recession, the wage demands could put additional pressure on company’s bottom lines. “We’re watching this very closely,” Nestlé SA chief Executive Officer told Bloomberg Television. “In most industrial European countries those negotiations for ’23 will unfold during the winter and first quarter.”

Some companies are already dealing with walkouts. For example, in November 2022, as red banners and whistling filled the air, Airbus SE employees marched out of an assembly plant in Bremen, Germany, in a bid to secure an 8% pay rise. Negotiating on behalf of 3.9 million manufacturing workers, IG Metall (Germany’s most powerful workers’ union) argued that wage hikes were needed to meet rising energy bills. In response, the employers’ association has insisted there simply won’t be extra profits to pass down the line, since “there will be no growth that can be distributed”. Yet, Germany’s recent decision to hike the minimum wage by 22% could encourage unions while feeding broader inflation.

With inflation still rising, there’s more pressure than ever on companies to reduce their spending. But holding down wages can backfire, and the next several months will show whether pay is one cost that companies can’t afford to cut.

(Dasha Afanasieva et alii. Europe’s Wageflation hangover. Bloomberg Businessweek, 14.11.2022. Adaptado)

European companies dealing with the most alarming energy crisis and inflation in four decades are bracing for a fresh shock: wage inflation and the increasing threat of worker actions. The theme has emerged this earnings season, with many of Europe’s most prominent companies warning that prices may rise further in 2023 amid tough wage negotiations in a tight labor market. A season of strike action is already in full swing across Europe as workers – who now suffer the most dramatic real income decline in years – push for higher pay.

With productivity almost flat and a number of countries in the euro area, as well as Britain, entering recession, the wage demands could put additional pressure on company’s bottom lines. “We’re watching this very closely,” Nestlé SA chief Executive Officer told Bloomberg Television. “In most industrial European countries those negotiations for ’23 will unfold during the winter and first quarter.”

Some companies are already dealing with walkouts. For example, in November 2022, as red banners and whistling filled the air, Airbus SE employees marched out of an assembly plant in Bremen, Germany, in a bid to secure an 8% pay rise. Negotiating on behalf of 3.9 million manufacturing workers, IG Metall (Germany’s most powerful workers’ union) argued that wage hikes were needed to meet rising energy bills. In response, the employers’ association has insisted there simply won’t be extra profits to pass down the line, since “there will be no growth that can be distributed”. Yet, Germany’s recent decision to hike the minimum wage by 22% could encourage unions while feeding broader inflation.

With inflation still rising, there’s more pressure than ever on companies to reduce their spending. But holding down wages can backfire, and the next several months will show whether pay is one cost that companies can’t afford to cut.

(Dasha Afanasieva et alii. Europe’s Wageflation hangover. Bloomberg Businessweek, 14.11.2022. Adaptado)

European companies dealing with the most alarming energy crisis and inflation in four decades are bracing for a fresh shock: wage inflation and the increasing threat of worker actions. The theme has emerged this earnings season, with many of Europe’s most prominent companies warning that prices may rise further in 2023 amid tough wage negotiations in a tight labor market. A season of strike action is already in full swing across Europe as workers – who now suffer the most dramatic real income decline in years – push for higher pay.

With productivity almost flat and a number of countries in the euro area, as well as Britain, entering recession, the wage demands could put additional pressure on company’s bottom lines. “We’re watching this very closely,” Nestlé SA chief Executive Officer told Bloomberg Television. “In most industrial European countries those negotiations for ’23 will unfold during the winter and first quarter.”

Some companies are already dealing with walkouts. For example, in November 2022, as red banners and whistling filled the air, Airbus SE employees marched out of an assembly plant in Bremen, Germany, in a bid to secure an 8% pay rise. Negotiating on behalf of 3.9 million manufacturing workers, IG Metall (Germany’s most powerful workers’ union) argued that wage hikes were needed to meet rising energy bills. In response, the employers’ association has insisted there simply won’t be extra profits to pass down the line, since “there will be no growth that can be distributed”. Yet, Germany’s recent decision to hike the minimum wage by 22% could encourage unions while feeding broader inflation.

With inflation still rising, there’s more pressure than ever on companies to reduce their spending. But holding down wages can backfire, and the next several months will show whether pay is one cost that companies can’t afford to cut.

(Dasha Afanasieva et alii. Europe’s Wageflation hangover. Bloomberg Businessweek, 14.11.2022. Adaptado)

European companies dealing with the most alarming energy crisis and inflation in four decades are bracing for a fresh shock: wage inflation and the increasing threat of worker actions. The theme has emerged this earnings season, with many of Europe’s most prominent companies warning that prices may rise further in 2023 amid tough wage negotiations in a tight labor market. A season of strike action is already in full swing across Europe as workers – who now suffer the most dramatic real income decline in years – push for higher pay.

With productivity almost flat and a number of countries in the euro area, as well as Britain, entering recession, the wage demands could put additional pressure on company’s bottom lines. “We’re watching this very closely,” Nestlé SA chief Executive Officer told Bloomberg Television. “In most industrial European countries those negotiations for ’23 will unfold during the winter and first quarter.”

Some companies are already dealing with walkouts. For example, in November 2022, as red banners and whistling filled the air, Airbus SE employees marched out of an assembly plant in Bremen, Germany, in a bid to secure an 8% pay rise. Negotiating on behalf of 3.9 million manufacturing workers, IG Metall (Germany’s most powerful workers’ union) argued that wage hikes were needed to meet rising energy bills. In response, the employers’ association has insisted there simply won’t be extra profits to pass down the line, since “there will be no growth that can be distributed”. Yet, Germany’s recent decision to hike the minimum wage by 22% could encourage unions while feeding broader inflation.

With inflation still rising, there’s more pressure than ever on companies to reduce their spending. But holding down wages can backfire, and the next several months will show whether pay is one cost that companies can’t afford to cut.

(Dasha Afanasieva et alii. Europe’s Wageflation hangover. Bloomberg Businessweek, 14.11.2022. Adaptado)

European companies dealing with the most alarming energy crisis and inflation in four decades are bracing for a fresh shock: wage inflation and the increasing threat of worker actions. The theme has emerged this earnings season, with many of Europe’s most prominent companies warning that prices may rise further in 2023 amid tough wage negotiations in a tight labor market. A season of strike action is already in full swing across Europe as workers – who now suffer the most dramatic real income decline in years – push for higher pay.

With productivity almost flat and a number of countries in the euro area, as well as Britain, entering recession, the wage demands could put additional pressure on company’s bottom lines. “We’re watching this very closely,” Nestlé SA chief Executive Officer told Bloomberg Television. “In most industrial European countries those negotiations for ’23 will unfold during the winter and first quarter.”

Some companies are already dealing with walkouts. For example, in November 2022, as red banners and whistling filled the air, Airbus SE employees marched out of an assembly plant in Bremen, Germany, in a bid to secure an 8% pay rise. Negotiating on behalf of 3.9 million manufacturing workers, IG Metall (Germany’s most powerful workers’ union) argued that wage hikes were needed to meet rising energy bills. In response, the employers’ association has insisted there simply won’t be extra profits to pass down the line, since “there will be no growth that can be distributed”. Yet, Germany’s recent decision to hike the minimum wage by 22% could encourage unions while feeding broader inflation.

With inflation still rising, there’s more pressure than ever on companies to reduce their spending. But holding down wages can backfire, and the next several months will show whether pay is one cost that companies can’t afford to cut.

(Dasha Afanasieva et alii. Europe’s Wageflation hangover. Bloomberg Businessweek, 14.11.2022. Adaptado)

European companies dealing with the most alarming energy crisis and inflation in four decades are bracing for a fresh shock: wage inflation and the increasing threat of worker actions. The theme has emerged this earnings season, with many of Europe’s most prominent companies warning that prices may rise further in 2023 amid tough wage negotiations in a tight labor market. A season of strike action is already in full swing across Europe as workers – who now suffer the most dramatic real income decline in years – push for higher pay.

With productivity almost flat and a number of countries in the euro area, as well as Britain, entering recession, the wage demands could put additional pressure on company’s bottom lines. “We’re watching this very closely,” Nestlé SA chief Executive Officer told Bloomberg Television. “In most industrial European countries those negotiations for ’23 will unfold during the winter and first quarter.”

Some companies are already dealing with walkouts. For example, in November 2022, as red banners and whistling filled the air, Airbus SE employees marched out of an assembly plant in Bremen, Germany, in a bid to secure an 8% pay rise. Negotiating on behalf of 3.9 million manufacturing workers, IG Metall (Germany’s most powerful workers’ union) argued that wage hikes were needed to meet rising energy bills. In response, the employers’ association has insisted there simply won’t be extra profits to pass down the line, since “there will be no growth that can be distributed”. Yet, Germany’s recent decision to hike the minimum wage by 22% could encourage unions while feeding broader inflation.

With inflation still rising, there’s more pressure than ever on companies to reduce their spending. But holding down wages can backfire, and the next several months will show whether pay is one cost that companies can’t afford to cut.

(Dasha Afanasieva et alii. Europe’s Wageflation hangover. Bloomberg Businessweek, 14.11.2022. Adaptado)