What are the pros and cons of a company that competes in a global environment? How do you think this has affected the U

A global economy will create a high degree of specialization. Each country will specialize increasingly in their area of comparative advantage. Increased productivity and innovation result from the increased competition, improving living standards. Equality in living standards between nations improves as goods, capital and labor flow freely between them. However, social unrest can result due to resistance to foreign companies.

The US economy has experienced low interest rates due to the inflow of capital from abroad. This has been helpful to the typical US company. The risks of such an environment include misunderstandings with other cultures and exchange rate fluctuations. In addition, many jobs have been lost in industries in which the US does not have comparative advantage. While good for the economy overall, these displaced workers find little consolation in this. The company's reputation may suffer as a result of lay offs. The company may face increased costs due to relocation, training, legal fees and time zone differences.

The company's shareholders generally benefit from globalization. However, the stock values of those companies who face steep foreign competition, such as auto makers, has fallen precipitously. The increased competition has also kept inflation low, which is beneficial to the typical US consumer.