Globalization

While the old economy was national in its scope, the New Economy is global. It is estimated that more than $21 trillion of the world economy’s combined output will be open to global competition in 2000, up from $4 trillion in 1995.12 This growth will be driven by global capital markets, reduced economic and trade barriers, and—perhaps most importantly—technological change, which makes it easier to locate enterprises and sell products and services almost anywhere. When the old economy emerged in the 1930s, the winners were states whose businesses sold to national markets, as opposed to local or regional ones. At the beginning of the 21st century, the winners will be the states whose businesses are most integrated into the world economy. Despite the current slowdown in many nations, a global orientation ensures expanding markets for a state’s industries. Since the workforce of globally oriented firms also earns more than other firms, a global orientation means that a state’s workforce will have a higher standard of living. The globalization indicators in this section measure two things: 1) the extent to which the state’s manufacturing workforce is employed producing goods for export13 and 2) the share of the workforce employed by foreign-owned companies.

STATES BY RANK
Rank	State	Score
1	Alaska	11.30
2	Hawaii	8.90
3	South Carolina	8.10
4	Connecticut	8.09
5	Massachusetts	8.00
6	Washington	7.94
7	New Hampshire	7.52
8	North Carolina	7.31
9	New Jersey	7.03
10	Texas	6.86
11	Maine	6.82
12	Delaware	6.73
13	Ohio	6.68
14	Tennessee	6.61
15	Kentucky	6.52
16	Georgia	6.51
17	California	6.49
18	New York	6.41
19	Indiana	6.36
20	Illinois	6.30
21	Pennsylvania	6.30
22	Rhode Island	6.29
23	West Virginia	6.27
24	Michigan	6.19
25	Oregon	6.04
26	Minnesota	5.90
27	Colorado	5.88
28	Arizona	5.80
29	Virginia	5.78
30	Utah	5.73
31	Vermont	5.72
32	Idaho	5.50
33	Maryland	5.49
34	Louisiana	5.28
35	Kansas	5.26
36	Alabama	5.16
37	Nevada	5.13
38	Missouri	5.06
39	Wisconsin	5.05
40	Arkansas	4.95
41	Oklahoma	4.68
42	Iowa	4.53
43	Wyoming	4.52
44	New Mexico	4.26
45	South Dakota	4.10
46	Nebraska	4.09
47	Florida	3.93
48	Mississippi	3.80
49	Montana	3.42
50	North Dakota	3.40

	U.S. Average	6

ALPHABETICALLY
State	Rank	Score
Alabama	36	5.16
Alaska	1	11.30
Arizona	28	5.80
Arkansas	40	4.95
California	17	6.49
Colorado	27	5.88
Connecticut	4	8.09
Delaware	12	6.73
Florida	47	3.93
Georgia	16	6.51
Hawaii	2	8.90
Idaho	32	5.50
Illinois	20	6.30
Indiana	19	6.36
Iowa	42	4.53
Kansas	35	5.26
Kentucky	15	6.52
Louisiana	34	5.28
Maine	11	6.82
Maryland	33	5.49
Massachusetts	5	8.00
Michigan	24	6.19
Minnesota	26	5.90
Mississippi	48	3.80
Missouri	38	5.06
Montana	49	3.42
Nebraska	46	4.09
Nevada	37	5.13
New Hampshire	7	7.52
New Jersey	9	7.03
New Mexico	44	4.26
New York	18	6.41
North Carolina	8	7.31
North Dakota	50	3.40
Ohio	13	6.68
Oklahoma	41	4.68
Oregon	25	6.04
Pennsylvania	21	6.30
Rhode Island	22	6.29
South Carolina	3	8.10
South Dakota	45	4.10
Tennessee	14	6.61
Texas	10	6.86
Utah	30	5.73
Vermont	31	5.72
Virginia	29	5.78
Washington	6	7.94
West Virginia	23	6.27
Wisconsin	39	5.05
Wyoming	43	4.52

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