Nottingham Centre for Research on
Globalisation and Economic Policy (GEP)

GEP Research Paper 06/41

The Fear of Competitive Pressure of Globalization and Outsourcing

ZhihaoYu

Abstract

Why does the current wave of globalization create more public concern/opposition than previous rounds of trade liberalization? This paper identifies a key difference between globalization and trade liberalization that could be responsible for it. It is shown that while both globalization and trade liberalization create inter-sector income distribution, the former also creates intra-sector income distribution and intra-sector uncertainty . These new features of globalization imply lower public support.

Issued in November 2006.

This paper is available in PDF format .

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