A crash course on how global economics works for the G-20

To quell the anger and gain a constructive focus in Pittsburgh, leaders must recognize how outdated it is to view the world as “Us” versus “Them.” A crash course on the global economy is in order.

The largest “American” steel producer is the majority-Indian-owned Arcelor-Mittal, with headquarters in Luxembourg and Hong Kong, and listed on the New York Stock Exchange and five European stock exchanges.

The largest “German” producer, Thyssen-Krupp, a conglomerate with 670 companies worldwide, is investing US$3.7 billion in a carbon and stainless steel factory in Alabama, which will create 2,700 permanent jobs there.

California's steel industry consists almost entirely of rolling mill operations, which process imported carbon steel slabs from Brazil, Russia and other countries. The Californian finished products are disqualified from President Obama's Buy American procurement rules for failing to meet the statutory definition of American-made steel. This illustrates the impossibility, futility and harm of attempting to define producers by national characteristics.

Today, the factory floor is no longer contained within four walls, one roof and national borders. Instead, the factory floor spans the globe, allowing firms to optimize investment and output decisions by matching production, assembly and other functions to the locations best suited for those activities.

Nokia is a Finnish brand but produces most of its components and performs most of its assembly in other countries.

Lenovo is a worldwide Chinese computer brand name but it maintains headquarters in Singapore and the U.S., it operates research centers in the U.S. and Japan, and assembles products in India, Mexico, Poland, and China.

Apple's ubiquitous iPods are designed in labs in California then assembled in China drawing on labor and components from South Korea, Taiwan, Singapore and Japan.

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