Globalisation & war..

[Bimzoori]

"Major economic players are divided by noneconomic issues- and have lost the ability to trust one another"-- Stephen Richt // The Globalist Research Center.

Covering the headlines of most newspapers and magazenes these days is the diplomatic rift btwn America/Britain who are eager to hasten the war against Iraq on the one side, and Germany+France+ most world nations who are against the war on the other side..

According to Robert J. Samuelson:

"Globalization already faces problems unrelated to Iraq:

1- Over dependance on the US economy (it accounted for 64% of world economic growth btwn 1995-2002)
2- Stagnation in Europe and Japan
3-Over-indebted developing countries
4-Hostility from some labor and environmental groups."

from Newsweek, Globalization goes to war.


What is the future of Globalization? Do you think the cuurent political situation is in favor or disfavor of Globalization.. ? Or is there no correlation at all between the two terms : war & globalisation.. ? or is the topic not discussable.. ?

[Bimzoori]

Originally posted by Bimzoori
What is the future of Globalization? Do you think the cuurent political situation is in favor or disfavor of Globalization.. ? Or is there no correlation at all between the two terms : war & globalisation.. ? or is the topic not discussable.. ?

interesting questions bimzoori..

infact there isnt any right or wrong answer to your questions, as its all just a matter of opinion and expectations... so as you suggested yourself, it seems that the topic is not discussable.. so lets wait and see what the future hides for globalisation..

:rolleyes:

[Quick Silver]

hey bimm are you okayyyyy , you are answering yourself:D


I disagree with some of points mentioned above that the USA is flooding the market with it's goods and products. Well if that is true then the USA is failing ot flood it's own market with it's own goods and products. I was reading a report yesterday that says USA is facing problems in their economy and major slow down due to the fact that there exports are way more less than their imports. So even the USA it self is getting globalized....

[Bimzoori]

thanx for ur input m5.. as you can see I was starting to talk to myself since no one else was around:D


hmm.. ok, so is the history of the Great Depression repeating itself.. but maybe with less damaging effects..?

one of the major causes of the depression in 1929 was domestic over production.. as theer were too many goods produces for even the home market to absorb..

is this conept related to what you mentioned:


the USA is failing ot flood it's own market with it's own goods and products

or I'm I confusing two different concepts.. ?

and does this indicate a diminish in globalization.. or will there be other countries to substitute the role of The States.. eg, the "Pacific Tiger" economies (Taiwan/Singapore/etc).. ?

[Quick Silver]

I wouldn't call this a start for a great depression, it could be only a recession in the economy of the US. The problem that is facing US industries and causing the US to import more than it exports is becuase foriegn products ,coming let's say from Japan and the Far East , are highly demanded by the US market since they are cheaper and trustable at the same time. Another thing also is that some markets in the US ,like the electronics market, is totally soaked with Japanese products since they are controlling the electronics market. Of course the US government has great control on what enters and leaves the states, yet the have to watch out for the supply and demand of their own market. Some times the US can't meet it's own market supply of certain goods and services, or in other times it's not feasabile to produce those products and services. I don't think any country is able to vertically intergerate it's own market completely, no matter waht. Part of it might be limited resources and their natural distribution on the world and the other part is the technology know-how. In the case of the US companies and industries, they are relectant to invest due to market slow down and the unwillingness to take risks.

Mentioning this, one must not forget the stimulous package that President Bush has deployed in his economic plan. Tax relief will cause money to flow in the market and encourage people to spend more, yet this might cause inflation to sky rocket, and the trend is happening now in the States already.

In my opinion, and I underline the words my opinion here, presidents Bush plan will not change things to better if it does not change them to worse. I am saying this because tax cuts cause inflation which has the same effect as the current slow market in investements. When companies want to invest in something they use analysis, called engineering economy analysis, to see what would be the present worth, future worth, annual worth, and pay back period of their investement and they consider inflation into their analysis which affect the decision on the project. Most business people and infact most economists argue that growth will cancel out inflation so why should we consider it?!!! that turns out to be not true.... anyways that's another topic.....

back to your topic :D globalization is totally a natural process in economies for those who support Adam's Smith law, the second hand law.... second hand law suggests that businesses ,no matter where they are, tend to support each other through an invisible hand because the fall of one business could cause the fall of other businesses.....in other words, I am welling to cooperate with my enemies because I need them and they need me too. The process might have not been clear through lately because most world markets are in stagnation phase and that is also natural.

[IceTea]

Refer to >> this (http://www.englishsabla.com/forum/showthread.php?threadid=10193&highlight=Globalization+Danger) thread for more details about globalization dangers !