Globalization question?

Assuming that globalization increases economics efficiency in that goods become cheaper and standard of living increases, wouldn%26#039;t the unemployment rate increase (in the nation that is allocating jobs in foreign countries)? Or is this assuming that since there%26#039;s more resources that there will be increased job opportunity?

Globalization question?credit bureau

Google %26quot;The Commanding Heights%26quot; - it is available on PBS%26#039;s website. Also, take a look at some readings by Stiglitz.

Opinions on this really differ. One arguement states that globalization increases the difference between the rich and poor...reducing the middle class...so, that would be bad.

Globalization question?

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Globalization is a useful vehicle for material progress only if we master communication. Presently, we communicate with only 10% accuracy (i.e. only 10% of the intended communication is actually properly conveyed).|||Globalization:

In the absence of a branch of science dealing with systematic study of nature, properties, composition, laws, and classification of wealth, it is natural that such misconceptions about globalization crop up. This study is a mirror image of chemistry. Without knowledge of chemistry one can not be master of economics. There are three general laws of wealth: Law of Conservation, Law of Equilibrium and Law of Mass Action (of chemistry, but is more suited to reactions involving change of wealth from one form to another). This science being exact, there are no exceptions to these God-made Laws.

According to Law of Equilibrium, wealth, like matter and energy, moves from higher concentration to lower concentration. Remember here that movement of wealth depends on concentration of wealth and not on quantity of wealth. A poor with higher means to wants ratio may lend money to a rich with lower means to wants ratio (generally rich have low means: wants ratio because their wants are always more). Two forms of wealth are required to express concentration of wealth. When we say price of potato is Rs.6.00 per Kilogram, the two forms of wealth here are, potato expressed in kilograms and money expressed in rupee. We must also remember that concentration of one form of wealth is always reciprocal of other form of wealth. Think that there are two countries with following concentrations of wealth.

$ 5 trillion capital $ 3 trillion capital

鈹€鈹€鈹€鈹€鈹€鈹€鈹€鈹€鈹€鈹€鈹€ 鈹€鈹€鈹€鈹€鈹€鈹€鈹€鈹€鈹€鈹€鈹€

$ 20 trillion resources $ 15 trillion resources

COUNTRY A COUNTRY B

In the above example, capital is concentrated in Country A because ? %26gt; 1/5. Resources are concentrated in Country B because 15/3 %26gt;20/5. If wealth is allowed to move freely, capital moves from Country A to Country B and resources move from Country B to Country A. When one country loses one form of wealth it must be remembered that it will be recipient of other form of wealth. Wealth can neither be created nor be destroyed but can be changed from one form to another. This is the basis of Double entry bookkeeping. By globalization there will neither be gain nor loss of wealth and this is Law of Conservation of Wealth.

What if a country forbids movement of any form of wealth to or from that country? The situation will be similar to a biological process called osmosis where only one form of matter (solvent) moves. Think that two adjacent banks offer interests at 5% and 5.5% on deposits. If interest were to move from bank to bank, interest would have moved from Bank paying higher rate to Bank offering lower rate. But interest is immobile. Only Investment moves. In Bank offering lower interest rate the investment is concentrated because Rs.100 Investment for Rs.5.00 interest is greater than Rs.100 Investment for Rs.5.50 interest. Hence Investment or depositors move from Bank offering low interest rate to bank offering higher interest rate. I have termed such movements of wealth as Osmotic Movement of wealth where only one form of wealth moves and the other remains static. If the brainy and meritorious migrate to developed countries and if there is limitation imposed on repatriation of their earnings to their homeland it will be a loss to the homeland. If unlimited repatriation is permitted, the skilled and meritorious remit their earnings to their home country and the home country is compensated.

Globalization has helped people oppressed by reservation policy specially Indians. The meritorious are the oppressed and it is a nightmare for them to get a government job in their home country. Globalization is the only ray of hope for these talented men. Perhaps, it is the God%26#039;s way of providing justice.

Globalization is neither good nor bad. If globalization is permitted, wealth moves from higher concentration to lower concentration till such time that equilibrium is attained. It is wrong on our part to artificially block this natural God-made phenomenon aimed at equalizing concentration of wealth.