Stephen Roach’s Three Forces of Globalization

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.”