Globalization of Talent and Globalization of Capital - The Lift and Drag of Forces of Globalization

By now, the avalanche/flood of layoffs, benefit cuts, and reduced work hours U.S. corporations has been wrecking nearly every state in the Union. Layer on the crash in home prices, the disappearance of one's house as an "ATM," and the rise in prices of essentials, the folks in the middle and lower classes are shell-shocked by what is hitting them.

Globalization has been a tremendous tidal wave engulfing the world, especially over the past twenty years. There are plenty of textbooks, Charles Hill's Global Business Today for example, that talk about the Globalization of Markets (GOM) and Globalization of Production (GOP). The former alludes to the development of markets in different countries and how firms can now sell their products to a global customer base. The latter refers to a firm's ability to lower production costs by finding cheaper sources of labor, material, and other production factors around the world.

I would like to introduce two other forces of globalization which, along with GOM and GOP, will shape the next century.
Globalization of Capital: This refers to the ease with which money moves around the world. Aided by technology, deregulation of financial markets, and lowering of trade barriers, the force of globalization of capital accelerates the flow of money into investments anywhere in the world that provide higher yields. This movement has contributed significantly to the current financial crises engulfing the world, as money from Europe and Asia flowed into the U.S. However, developing countries are liberalizing their financial regimes, and investment opportunities there still are more attractive than those in developed countries. This force will shape the physical infrastructure in many countries this century.
Globalization of Talent: Many firms have taken advantage of lower costs of labor in developing countries- outsourcing of manufacturing, call centers, etc. to Asia are examples. Increasingly, however, companies are hiring talent across the world to drive innovation. Technology companies are willing to pay U.S. wages to the best engineers in Asia, those who can create the future products. As schools in Asia, South America, and other regions get more recognized and students see the opportunity, more firms are going to be searching for talent and finding it in various parts of the world. This force is perhaps greater than any of the other three globalization forces, as the force of the global talent pool will usher in changes in every aspect of our lives.
There is an interesting video on this topic by World Business.

Globalization- May the Forces be With Us!