Michael Lissack 5. US Companies face global markets and intense domestic competi- tion like never before. Like their U.S. counterparts, global consumers are growing more ed- ucated and sophisticated, prying open domestic and global markets that many American companies long assumed to be stable, safe, and profitable. American companies are changing what they sell abroad, moving from man- ufactured goods to intellectual property rights such as patents and licenses. This adds to the insecurity of American workers by moving jobs out of the United States. Workers are worried that trade pacts like the North American Free Trade Agreement (NAFTA) will do the same thing. On the domestic front, new competitors have appeared from abroad, forcing virtually every firm in local markets to compete with global players. At the same time, a long list of factors contributes to a more compet- itive climate for the consumer dollar in the United States: less regulation in some critical industries, a steady flow of new technologies, a more so- phisticated consumer, quicker turnaround in the development and delivery of new products, a more varied way of reaching customers, and a greater number of new products for those customers. Protected market positions will be hard to retain, as consumer loyalties are likely to continue to decline. Because of these pressures, companies can no longer afford to provide safe harbors unless they can be persuaded that such loyalty to employees will result ill bottom-line results in both the short and long term. And without companies as safe harbors, without faith in institutions, with worries about corporate and government accountability- the American worker is scared and confused.
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