Hirst and Thompson: Globalization in Question: North-South Trade and International Competitiveness

PQ Hirst and G Thompson, Globalization in question (Polity Press).

Ch. 4: North-South Trade and International Competitiveness:

Two trends in the globalization literature are highlighted the our authors in this chapter. The first is the relationship between development in both the North and the South, a phenomena that has received a good deal of attention. The other is the idea of being internationally competitive. This competition stretches from country to individual, and threatens to pervade all aspects of life.

"The chapter is organized as follows. The first part sets out the issues involved and looks at the historical antecedents to the present North-South debate...The second part of the chapter examines the associated trends in international competitiveness. First we assess the reason for the growth of interest in the concept. Second we consider the conceptual frameworks that can be brought to bear in assessing it. Third the geo-0economic relationship between the major Triad blocs and the secondary players in the international competitiveness game is examined. Fourth we focus on economic competitiveness in particular, and the differences between the competitiveness of firms and nations in terms of the implications of trade theory. The concluding section sums up the implications for the globalization thesis and the lessons to be learned from it" (98).

There is, once again, a boon of evidence and data, first in relation to north-south economic interaction. This is seen to be developing rapidly from the 1970s onward.

"At the root of a concern about the effects of the growth of North-South trade is the question of the continued 'international competitiveness' of the Northern economies" (114).

There is an extended and apparently thorough account of the potential causes of competitiveness, etc.

"First, the extent of 'globalization' is once again exaggerated...Secondly, there are other explanations for the undermining of the living conditions of the unskilled workers in the advanced countries than just the economists' emphasis on trade and/or technical change...Thirdly, 'domestic' explanations remain more important to the outcomes in these matters than 'international' ones...Fourth, there is a need to disaggregate: Europe is not like the US and there are lots of differences within Europe...Finally, just as in the case of the discussion of 'globalization', the discussion of 'international competitiveness' must be treated with great caution" (133).