It raises eyebrows when people hear it, but Europe is doing well from globalization and greater trade, says Erik Nielsen, chief European economist with Goldman Sachs in London.It stands to benefit much more in the future. Investors have already taken note, with global fund managers naming the dozen-nation euro area as their preferred stock market worldwide for six straight months and forecasting more gains next year, according to findings in a Merrill Lynch & Co. survey published this month.
Globalisation is a tough sell, though, for workers in Europe, with its history of state ownership, guaranteed employment and strong unions.
European companies are better able to exploit opportunities in emerging markets partly because they have cut jobs at home or moved factories to cheaper labour markets overseas to become more competitive.
While Europe is benefiting from globalisation, the continents workers perceive it as a threat to the job security and leisure time theyve enjoyed for decades, says Martin Baily, a senior adviser at McKinsey & Co. in Washington.