The Recent Executive Order Signed By President Trump Stating

1336 WordsFeb 11, 20176 Pages
The recent executive order signed by President Trump stating the U.S. will withdraw from negotiating the Trans-Pacific Partnership deal has major implications for “globalization.” Obama’s administration had pushed hard for it because it was essentially an attempt to create a single market for the United States and 11 other countries that border the Pacific Ocean, including Canada, Mexico, and Chile. The TPP’s idea was to make goods flow more freely and cheaply between all partners. All of TPP’s partners represented one third of global trading. The goal for TPP was to maintain U.S. trade dominance in Asia, attempting to ward off China’s growing economic influence. The problem is TPP did not produce jobs or increase wages. The issue is that…show more content…
The first is the direct effect of the United States turning inward. As the world’s largest economy measured in market dollars and the third most populated, a partial withdrawal (i.e. TPP) from the global economy is therefore likely to register in measures of globalized stocks and flows, simply by virtue of the country’s size. The U.S. holds the largest portion of global trade, foreign capital stocks, and migrants. However, relative to size, the U.S. is not as globally integrated as many other countries. The U.S. is a relatively closed economy, accounting for only 11% of global trade volumes which is far below its 24% share of global GDP. In contrast, America plays a bigger role in global capital markets. This is where the area that may be most directly vulnerable to Trump’s policies will be outward foreign direct investment (FDI). The U.S. holds claim to 18% of global FDI assets. The U.S. is the most globalized, in relation to other countries, in terms of its openness towards migrants. America is home to 19% of the world’s migrant stock, while accounting for only 4% of total world population. The U.S. is the top destination for migrants from 60 countries. The expulsion of large numbers of migrants and/or the greater restrictions on the number of future immigrants would directly change this aspect of the global economy (Seidel & Chandy, 2016). The second major effect of
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