For both soaring Silicon Valley and slumping Central New York, and
for firms both large and small, global integration usually has a
very positive impact. In this study, Howard Lewis and J. David
Richardson explore new gains from deep international integration,
some of which were featured in two earlier Institute studies of the
underappreciated benefits of deep export dependence"*." Why Global
Integration Matters Most updates the export studies and explores
the evidence for a more radical idea.
A growing body of research literature demonstrates that globally
engaged firms and their workers enjoy numerous performance benefits
over local counterparts that are identical with respect to size,
industry, and location. Conscious decisions to export, import,
invest abroad, or partner with foreign investors or technology seem
to be a catalyst for added benefits, especially rapid and stable
job growth. Over time, globally engaged firms rejuvenate whole
industries as their market share rises and that of more insular
firms shrinks. Any, many, or all types of global commitments reward
firms, workers, and local communities.
The study supplements its research survey with real-life
profiles of representative American exporters, importers (often
businesses importing machines and components), investors abroad,
foreign affiliates, and technology partners. It also weighs
criticisms and alternative interpretations of the research, and
discusses the problems of those left on the margins of global
engagement.
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