In the For the Record of Jan. 16, an incorrect first name was given for economist Robert B. Reich. (Published 1/18/91)

From an article by Laura D'Andrea Tyson in the winter issue of The American Prospect:

Globalization is here to stay. Over time, U.S. companies are likely to send larger shares of their operations abroad, while foreign companies are likely to bring more of their economic activity here. ...

As I agree with {economist Howard} Reich about the long-term trend, so I agree with him about what the overarching goal of U.S. policy should be. ... The goal should be American competitiveness, which he defines as the capacity of Americans to add value to the world economy and thereby gain a higher standard of living ... without going into ever deeper debt. With this goal in mind, national economic policies should be formulated to make the United States an attractive production location for the high-productivity, high-wage, research-intensive activities of both domestic and foreign firms.

Not surprisingly, Reich and I share a policy agenda that gives priority to enhancing the education and skills of the American work force, to building America's economic infrastructure and to fostering research and development. The nation's human capital, infrastructure and research base are its most important immovable assets.

We also agree that as a general rule, the United States should continue to welcome foreign direct investment, which can bring technology, jobs, greater efficiency and other benefits. Nonetheless, in some circumstances, these benefits carry attendant risks -- in particular, the risk of a more concentrated industrial structure with less competition or the risk of excessive dependence on foreign suppliers for national defense. It is prudent, therefore, to monitor foreign direct investment for antitrust and national security purposes, as other nations do.