Globalization is transforming separate national economies into a single world economy and is forcing companies into an increasingly competitive environment. Labor and capital will move to where they are wanted and stay where they are well treated. The Internet has truly made the planet the relevant market as corporations and investors have sought new opportunities in both local and foreign markets. With rising mobility and soaring capital flows, the need for comprehensive destination information and customized moving solutions has never been greater. Who will provide the self-service e-solutions, language training, exchange rate information, schools, or numerous other destination challenges? Services tailored to the needs of people on the move will be increasingly valuable.
Yes, “The World Is Flat,” Thomas L. Friedman said in 2005 in his bestselling book of the same name. And yes, that means that businesses can be located just about anywhere and ship products to their customers around the globe. But his focus was limited to labor. What about capital? What about creating a receptive environment for the globalization of capital? The tax competition going on right now among countries is the core of a nation’s future prosperity. Corporate and personal taxation will be the front and center debate in any conversation about workers, jobs, and economic growth. The essence of economics is about harnessing the power of incentives to produce prosperity. Taxes matter. Letting people keep the fruits of their labors matters.
[Dr. Barry Asmus is a Senior Economist for the National Center for Policy Analysis. He recently spoke with a group of Cartus clients on the topic “Globalization: International Prosperity and Its Impact on America.”]