The rise of technology has allowed our environment to be characterized as a global one. “The global economy" gave business the ability to market products and services all over the globe. It has also allowed them to develop partnerships and alliances throughout the world, which has become essential for success in today’s business.”  Prior to Globalization, the United States dominated the global economy.  In recent years, however, the U.S. share of the global economy has shrunk to approximately 25%. This trend is expected to continue as the economies of many newly industrialized countries continue to grow at a faster rate.

This increase in globalization has created many new opportunities, such as niche markets, and requires everyone to keep up with globalization in order to stay competitive. As David Shane points out in his article entitled "Youth must learn skills to succeed in Global Economy", “Technology and trade separate the economy into two camps -- those with the skills to participate in the global economy and those who lack them.”  Shane indicates that advances in technology are giving developing countries the ability to compete directly with developed countries in terms of education and skills. With the ever increasing Global Economy and widespread use of the internet, people and businesses are realizing that they are often competing with people around the world for contracts and business deals.

The global economy has created an environment in which many large corporations are becoming transnational firms. Critics of this trend say it has caused a worldwide ‘race-to-the-bottom’ where companies are so focused on staying competitive that they often outsource production to developing countries with the lowest labor, environmental and economic standards.  While these business practices allow companies to save money, leading to larger returns for investors and more affordable products for their clients, at the same time balancing the world economy, some believe they also serve as a motivation for governments in developing nations to keep their legislation lax when it comes to labor and environmental laws. These transnational corporations often lobby governments in order to gain access into these developing countries. Still, many developed countries have protectionist policies that do not enable developing countries to export their goods into developed markets. While some believe these activities should be curtailed with increased government legislation, proponents of economic liberty argue that the governments themselves are the reason for most of the economic problems attributed to globalization.

Trade barriers more often hamper economic development in the Global South, as compared to the North. New technologies like the internet may speed up the reduction of trade barriers. Critics of the expanding global economy argue the reduction of trade barriers will create harder competition for the previously protected companies in developing countries, while its advocates point to the new possibilities in global markets for emerging market companies such as Haier (China) and the Tata Group (India).  In 2006 the global economy continued to expand so that most individual, corporate and government borrowers are making good on their obligations, which in turn has kept financial markets in clover.

Office of Commercial and Business Affairs

The Office of Commercial and Business Affairs (CBA), headed by Frank Mermoud, Special Representative for Commercial and Business Affairs, plays a major role in coordinating trade and investment matters in support of U.S. firms doing business overseas. CBA can help answer your questions and provide information on important issues such as corruption and bribery in overseas markets, U.S. export controls on sensitive equipment and technologies, and business-related visas for employees, partners and clients of U.S. firms. CBA also coordinates State Department advocacy on behalf of American businesses and can provide assistance in opening markets, leveling the playing field, protecting intellectual property and resolving trade and investment disputes.

CBA and the Department of State work with our U.S Government trade promotion partners and our U.S. embassies around the world to support American businesses overseas by providing commercial information and identifying market opportunities for American firms, advocating on their behalf, and encouraging corporate responsibility. U.S. Embassy officers are the eyes, ears, and in-country advocates for U.S. business interests throughout the world.