How Globalization Affects Puerto Rico

Globalization's impact on Puerto Rico:

Positive

• Trade Access: Integration into US/global markets expands exports (pharma, medical devices, services).
• Investment: Strategic location, skilled bilingual workforce attract FDI.

Negative

• Competition: Local firms face lower-cost international rivals.
• Job Offshoring: Manufacturing moves to cheaper jurisdictions.
• Economic Dependence: Vulnerable to global shocks (2008 crisis, supply chains).
• Environmental Stress: Industrial growth increases pollution, resource use.

As a US territory, Puerto Rico cannot set its own trade policy, limiting adaptive capacity. The Jones Act (cabotage) raises shipping costs. Balancing integration with local resilience remains a core challenge.