How Should Small Open Economies Respond to the Challenge of Globalization

It is not easy to state whether a country is small. First, we need to decide the decision method. "The definition of a small open economy is a price acceptor in the world market" (Wynne) is more difficult to apply this definition than the first one. We should focus on importing or exporting. Regarding imports, in theory, every country is a price recipient. Because the country has not focused on what to buy, it is not pricing power.

Regarding this very important question about the business role, I am from a small country in Finland. We are a very open economy. We depend heavily on world trade and world business. The warranty against us is to put our trust in the rule base system of the world. I think that politics became enriching because the United States has become an anchor of rule based systems in the world. Well, my last message is to encourage me to speak to the business world and take a position. I saw American companies participate in political discussions in China. This is an exciting experience. This is a Chinese development forum. There may be 40 houses and 50 major global companies. I am there to represent Nokia. American business leaders are teaching how the Communist leaders of China are becoming social. They have to invest more in the pension system and social security and pay more attention to Chinese rural areas.

The economies represented by SCF (China, the United States, the European Union) account for about half of the world economy. They, in particular China, have very different views on what the basic rules of the world economy should be. Over the past few years, the three parties are basically competing and using Asia as a battlefield to build a building that will enhance the economic vision. The United States has negotiated the controversial Pacific Rim Partnership (TPP), but the EU is trying to reach an agreement through a series of bilateral negotiations, and China is trying to advance a series of alternative regional agreements I will. At the same time, the United States and Europe have fought and cooperated alternately when talking about relations as the arbitrator of the world economy. Will this confusion continue? Is there an economy with sufficient domestic politics to promote an ambitious master plan?