||"The Federal Reserve is
a complex organization, and many Americans understand
very little about how it carries out its duties and
impacts their lives, let alone how it is evolving in
the changing environment. Yet, this understanding can
contribute significantly to public well-being and to
the Federal Reserve’s policy goals as well. The
Federal Reserve has been long committed to enhancing
public understanding of its activities, the economy,
and the financial system through a variety of outreach
programs and educational materials."
- Janet Yellen, President, Federal
Reserve Bank of San Francisco.
Globalization: Threat or Opportunity
for the U.S Economy?
This month’s issue of Econ Ed
and the Fed highlights
economic research published in a past edition of the FRBSF
Economic Letter. Globalization:
Threat or Opportunity for the U.S. Economy? summarizes
a speech given by past 12th District CEO and President, Robert
T. Parry, at the Hawaii Society of
Investment Professionals in Honolulu on April 29, 2004.
This month’s activities will introduce students to the
following economic concepts: comparative advantage, specialization,
opportunity cost, productivity, globalization, outsourcing,
and offshoring. (View
the state standards that align to these concepts).
Economic Letter Summary:
This Economic Letter addresses the issues of globalization
and free trade as it relates to the U.S. economy and the American
worker. The author focuses his discussion on four key questions:
- Why are most economists in favor of free trade?
- What exactly are “outsourcing” and “offshoring?”
- Is globalization a threat or an opportunity for the U.S.
can policies do to help U.S. workers?
The author provides an insightful examination of the pros
and cons of free trade by analyzing the effects of
on the American worker. The article concludes by stressing
the importance of improving the U.S. education system: “Education
is the bedrock of our current edge in technology and productivity.
It’s the key to producing workers with the flexibility
to learn new skills as market conditions evolve. And it’s
the hope and promise we must provide for future generations
Economic Letters are short essays on current and pertinent
economic topics from the Federal Reserve Bank of San Francisco’s
Economic Research Department. For letters on a variety of other
topics and/or to subscribe, please visit our FRBSF
Economic Letters web page.
Econ Ed and the Fed is a publication of the Federal
Reserve Bank of San Francisco. Reaching approximately
10,000 educators throughout the western U.S., it’s
provided as part of the Fed’s
commitment to economic and financial education.
Views expressed are not necessarily those of the Federal
Reserve Bank of San Francisco or the Federal Reserve
System. Articles may be reprinted or reproduced if
the source is credited. Please send a copy of the reprinted
materials to the editor.
Contributors to this issue: Gary
Zimmerman, Economist, Yelena Takhtamanova, Economist,
Renee Courtois, Research Analyst, Jody Hoff, Economic
Education and Public Programs Manager, and Darcy Horak,
Economic Education and Public Programs Specialist.
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