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The Liberal World Order and the Job-Offshoring Backlash—In Structuralist Perspective

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  • Ozawa Terutomo

    (Emeritus Professor of Economics, Colorado State University, Fort Collins, CO80523, USA; Research Associate, Center on Japanese Economy and Business, Columbia Business School, New York, N.Y. 10027, U.S.A)

Abstract

Many factors have contributed to the current wave of anti-globalization sentiments in the advanced world. This paper focuses on one of such factors, MNEs’ job-offshoring through their overseas networks of operation and its impact on the US working class. To this end, the “ladder of economic development a la Schumpeter” is presented as an analytical model from a structuralist point of view. Within this framework, the relations of innovation-driven structural change, transmigration of industries from more advanced to emerging economies at the hands of MNEs, and the globalization-afflicted working class and communities in the US are examined as closely intertwined, co-evolutionary phenomena. Four MNE-related sources of globalization angst and social costs are then discussed. The paper concludes with a much-needed analysis of the economic rationales for President Trump’s “if you sell here, produce here” jawboning on MNEs.

Suggested Citation

  • Ozawa Terutomo, 2018. "The Liberal World Order and the Job-Offshoring Backlash—In Structuralist Perspective," Global Economy Journal, De Gruyter, vol. 18(3), pages 1-11, September.
    • Handle: RePEc:bpj:glecon:v:18:y:2018:i:3:p:11:n:4
    DOI: 10.1515/gej-2018-0026
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    References listed on IDEAS

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    1. Paul A. Samuelson, 2004. "Where Ricardo and Mill Rebut and Confirm Arguments of Mainstream Economists Supporting Globalization," Journal of Economic Perspectives, American Economic Association, vol. 18(3), pages 135-146, Summer.
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    3. Terutomo Ozawa, 2016. "The Evolution of the World Economy," Books, Edward Elgar Publishing, number 14828.
    4. Kojima, Kiyoshi & Ozawa, Terutomo, 1984. "Micro- and Macro-Economic Models of Direct Foreign Investment : Toward a Synthesis," Hitotsubashi Journal of Economics, Hitotsubashi University, vol. 25(1), pages 1-20, June.
    5. Ozawa, Terutomo, 2017. "How to handle the job-offshoring backlash?," Columbia FDI Perspectives 198, Columbia University, Columbia Center on Sustainable Investment (CCSI).
    6. Terutomo Ozawa, 2009. "The Rise of Asia," Books, Edward Elgar Publishing, number 13084.
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