3/99 mechanical engineering: editorial

editorial

Engineering Globally

By John G. Falcioni, Editor-in-Chief

In its philosophical blueprint, the Euro project's ambitious and often controversial pursuit to tie a large bow around a continent's differing currencies is aimed at advancing the European economy. The concept of mutual growth by uniting diverging entities with different strengths has become ever more popular during these last years of the 20th century.

Many of the elements behind this logic are also the driving forces of globalization, a term that has quickly become almost a cliche. The collaboration of national economies and advances in information technology are creating a business climate where national barriers are crumbling as competition is being redefined.

For engineers, the expanding global landscape represents opportunities as well as unique challenges.

According to the report, "The Globalization of Engineering Practice," released by ASME's Committee on Issues Identification, three key questions must be addressed:

First, what factors, such as licensing requirements, treaties, trade agreements, and codes and standards, exist to restrict or enhance the cross-border flow of engineering services? By the year 2000, the volume of world trade in goods and services will likely exceed $8 trillion, according to the report.

Second, how will emerging international policies regarding intellectual property rights affect engineers and their work? The foundation of the international economy will be trade in the flow of information, innovation, and knowledge.

And third, what are the emerging markets for engineering products and services, and how do these markets regulate the education and practice of engineering? The primary new markets for engineering products and services are in developing countries, particularly in Asia and Latin America, where modernization has created a high demand for infrastructure and other industrial projects.

Trade agreements with member countries of the World Trade Organization account for about 95 percent of total world trade. Of key importance to engineers is the continuing rise in services trade. U.S. international transactions in services, for example, increased nearly 14 percent between 1995 and 1997, according to the report. And within professional services, engineering is among the fastest growing trade categories.

Nine countries, as identified in the report, offer some of the most promising opportunities for engineering products and services. The list is based on economic growth, market openness, and stability of the country.

South Africa represents one of the last untapped markets for many foreign exporters and investors. Hong Kong boasts an open economy, a focus on infrastructure development, and a sophisticated bilingual consumer population. Taiwan is posting 6 percent annual growth. China has modernization plans that call for imports of equipment and technology of approximately $100 billion per year. The Republic of Indonesia plans to modernize the country's infrastructure. India has taken steps to break down barriers to trade and foreign investment. Argentina is the richest Latin country and represents a model of economic reform. Brazil's market for environmental technologies is particularly strong. Mexico's tariff reductions, privatization, and modernization indicate that big emerging sectors are poised for solid growth.

The early 21st century will be highlighted by an electronically connected world where growth will go to companies flexible and insightful enough to understand that pooling resources and working together can benefit everyone.

Email your comments or questions to: falcionij@asme.org