Globalization. Is it beneficial? The answer is no and yes.Globalization happened in the absence of a level playing field.All currencies became fiat money after delinking exchange rate with gold.Exchange rates can be fixed to give advantage to the exporting country. Labour laws differ.It is possible to fix low wage rates with tough action.In fact, no two countries are identical.In reality,globalization has helped some countries like China to have huge current account surplus and some countries like USA with huge current account deficit.
Any country that blindly follows liberalisation and globalisation will land in trouble. Any country whose imports are greater than exports year after year will surely face a liability in foreign currency. To meet this liability in foreign currency it will borrow and further incease its liability as it will now have to repay principal and interest.
Such countries whose imports are consistently greater than exports will not be able to create jobs . This is the hidden secret of free trade.
USA ,being the largest and the most open economy in the world , is vital for the survival of many export oriented countries like China, Japan , Germany...
Globalization plus proclivity of American Corporations to meet or satisfy the expectations of Wall Street has impacted Americans.
American economy should benefit American Citizens first. A new report says that Walmart importing good from China has led to 400,000 U.S. jobs being lost between 2001 and 2013.Read Article in the hyperlink given below:
http://www.nydailynews.com/news/world/400-000-u-s-jobs-lost-due-walmart-imports-china-article-1.2460025
Job losses will certainly impact American economy.American Corporations will do well to reduce their urge to satisfy wall street.Job losses will also happen because of Automation,Artificial Intelligence,& Robots.
Manufacturing matters.To protect manufacturing industry which needs consistent R&D investment Governments of all countries should fund manufacturers with some financial instrument like preference shares or some other method to ensure zero role for share market.No manufacturer can afford to dance to the tune of share market as doing so will require them to outsource,reduce R&D spend, downsize etc.
Manufacturing's Multiplier Effect is Stronger than Other Sectors' in the economy.Look at the figure below:
Every dollar sales of manufactured products supports $1.33 in output from other sectors—this is the largest multiplier of any sector. Manufacturing plants, therefore, have a powerful and positive impact on economic development. This study in USA will be valid for every country in the world.Both globalization and excessive obsession with stock markets needs a rethink for the benefit of global economy.Read the full article in the link below:
http://www.themanufacturinginstitute.org/Research/Facts-About-Manufacturing/Economy-and-Jobs/Multiplier/Multiplier.aspx
This post was written much before Donald Trump became president of USA.
Any country that blindly follows liberalisation and globalisation will land in trouble. Any country whose imports are greater than exports year after year will surely face a liability in foreign currency. To meet this liability in foreign currency it will borrow and further incease its liability as it will now have to repay principal and interest.
Such countries whose imports are consistently greater than exports will not be able to create jobs . This is the hidden secret of free trade.
USA ,being the largest and the most open economy in the world , is vital for the survival of many export oriented countries like China, Japan , Germany...
Globalization plus proclivity of American Corporations to meet or satisfy the expectations of Wall Street has impacted Americans.
American economy should benefit American Citizens first. A new report says that Walmart importing good from China has led to 400,000 U.S. jobs being lost between 2001 and 2013.Read Article in the hyperlink given below:
http://www.nydailynews.com/news/world/400-000-u-s-jobs-lost-due-walmart-imports-china-article-1.2460025
Job losses will certainly impact American economy.American Corporations will do well to reduce their urge to satisfy wall street.Job losses will also happen because of Automation,Artificial Intelligence,& Robots.
Manufacturing matters.To protect manufacturing industry which needs consistent R&D investment Governments of all countries should fund manufacturers with some financial instrument like preference shares or some other method to ensure zero role for share market.No manufacturer can afford to dance to the tune of share market as doing so will require them to outsource,reduce R&D spend, downsize etc.
Manufacturing's Multiplier Effect is Stronger than Other Sectors' in the economy.Look at the figure below:
Every dollar sales of manufactured products supports $1.33 in output from other sectors—this is the largest multiplier of any sector. Manufacturing plants, therefore, have a powerful and positive impact on economic development. This study in USA will be valid for every country in the world.Both globalization and excessive obsession with stock markets needs a rethink for the benefit of global economy.Read the full article in the link below:
http://www.themanufacturinginstitute.org/Research/Facts-About-Manufacturing/Economy-and-Jobs/Multiplier/Multiplier.aspx
This post was written much before Donald Trump became president of USA.
