Emergic: Rajesh Jain's Blog

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Stephen Roach’s Three Forces of Globalization

June 19th, 2005 · 1 Comment

John Robb quotes Stephen Roach: “Three new mega-forces are now at work in driving today’s uniquely powerful strain of globalization: (1) The global labor arbitrage – the IT-enabled integration of offshore employment pools that fundamentally alters the worldwide mix of job creation and wage determination. (2) The global price arbitrage – a price-setting mechanism that captures the balance between global supply and demand. (3) The global saving arbitrage – reflecting a world that is near desperate in its efforts to keep funding the US current account deficit and the excess spending of the income-short American consumer.”

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