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5. How is globalization affecting businesses in the US? Discuss how it is impacting RegionalEconomic Integration and FDI.Globalization has a huge effect on US businesses. Some effects are positive and some are negative. The positive effects include the following. Globalization has increased the choices of goods and services that are available to US customers while lowering the average price for goods. Productivity has increased long term workers. Venture capital or investments have increased. Transfer of capital is more efficient. The US has grown to become a leader in global healthcare and technology. The negative effects of globalization include the following. The US needs to retrain workers (both private and public sectors) due to all of the changes from globalization. Without retraining, people are left unemployed. For example, in many jobs now, workers need to know how to use a computer. Many people who do not know how to use a computer will be left unemployed.Numerous studies have shown that the effect of globalization on trade is positive and significant. Studies on regional integrations on the mutual flow of Foreign Direct Investment (FDI) have revealed that the gross domestic product in both the source and destination countries of Foreign Direct Investment has positive and significant effects on Foreign Direct Investment flow (Nagheli et al., 2013). Similarly, Naveh et al., 2012 have shown that regional integration causes economic growth integration in regional countries but it does not have a significant effect on the integration of economic welfare level in some countries. Naveh et al., 2012 also showed that economic liberalization has a positive effect on GDP growth of selected countries. As economic openness increases, international trade volume increases. Thus, globalization has a positive effecton Regional Economic Integration and FDI.References:Kolb, M. 2019. What Is Globalization? And How Has the Global Economy Shaped the United States? Peterson Institute for International Economics. Retrieved from Abbott, B. & Kenton, W. 2019. Economic Integration. Investopedia. Retrieved from Pettinger, T. 2016. Role of IMF. Economics. Help. Retrieved from Reynolds, K. 2017. How cultural differences impact international business in 2017. HULT. Retrieved from Agbafe, V. 2018. Globalization: A U.S. Growth Opportunity. Harvard Political Review. Retrievedfrom Feils, D.J. & Rahman, M. 2008. Regional economic integration and foreign direct investment: The case of NAFTA. MANAGE. INT. REV. 48: 147. Retrieved from
Nagheli, S., Amroabadi, B., Nagheli, E., & Lordjani, A. 2013. The Effects of Various Regional and Global Integration Indices on Foreign Direct Investment (Case Study: OPEC Countries). International Journal of Academic Research in Business and Social Sciences. 3:8. Retrieved from