http://www.nytimes.com/2014/09/17/business/economy/us-manufacturing-is-back-not-so-fast.html?_r=0
The article above, "Globalization Is in Retreat? Not So Fast" discussed a very compelling argument as to whether globalization is beginning to decline. The author argues that the low costs of energy prices in places such as the United States has allowed for global powerhouses to become more competitive and return as centers of investment (rather than outsourcing to other countries). The article discusses that since the Great Recession, trade has slowed as countries tried to stimulate growth internally. Technologies have also made the use of certain external resources irrelevant. This being said, the author does say that although it may seem like globalization is in decline, there is no true halting of the process. Many countries such as the BRICs, continue to grow and become centers of industrialization (albeit at a slower rate than before). The author also shows the economic convergence of currency has a major impact on globalization. Although numbers may seem down, this article shows that despite its decline in recent years, globalization is still present.
This article directly correlates to our discussion of whether the world is becoming more flat or not. The author does show points that globalization is in decline thanks to the growing competitiveness of global powerhouses, but does admit that there are some countries that are still being exploited because for cheap labor. I think that the lower costs of oil and natural gas have had a major impact, even in the last six months since this article was written, that have allowed the powerhouses of outsourcing (such as the U.S.) to regroup and bring jobs back domestically. However, I do think that this does not mean a reverse of globalization. Through the importance of trade, economic interdependence, and technology, the world is going to continually be intertwined. The article even states that there are no significant numbers to show that globalization is in reverse. Despite a slow growth in "globalization numbers" (which, as we have contested in class, are slightly ambiguous in nature), I think the world is still at an age where it is progressing towards being more "flat".
You mentioned that the use of certain external resources are becoming irrelevant due to technology, do you think there are any resources that are more relevant because of of the increase in different technologies?
ReplyDeleteAlso I agree with what you said about how even if a nation begins to bring some jobs back that does not mean that it is reversing globalization. I believe that globalization will continue however at different rates depending on what is going on in the world at the time.
I believe that bringing jobs home and stimulating internal growth will not reverse the globalization efforts. I do not think globalization will reverse or end anytime soon. I agree that BRIC countries are begin to increase their globalization endeavors and I believe that there are still places that globalization has not really touched and can still impact. But that's not to say it might be different one day. In the future, do you think globalization will decline? Or if you do why will it decline?
ReplyDeleteValerie, I think with the increased technology, the one external resource that we will need to continue to rely heavily on is human capital. Although technology has become a vital aspect of our life, those who know how to use it, fix it, and improve it are just as(if not more important).
ReplyDeleteJulie, I think that the article makes a pretty good argument that although globalization is still happening, it is not at the rates that we have seen in the past. The Ted Talk brought up this point as well that we are not even close to the impacts globalization had during, say, the early 20th century. I believe that many of the developed countries now are focusing on building themselves up domestically once again because the increased globalization has caused problems (i.e. the Great Recession pulling many countries down at once). So I do not think we will ever reverse globalization because I think thats impossible. But with countries like the U.S. attaining capabilities to be relatively self sufficient in providing resources such as energy then yes I think that globalization as a whole will be in a decline.
I think we are beginning to see states try to reclaim some of their independence from globalization and there might be a general revolt against further globalization by states, however I do not think the process can be stopped. In the US, for instance, domestic pressure has called for the government to bring jobs back to the US. Also, the US has pushed to become "energy independent", a movement I believe is largely due to ill effects of globalization. I believe that moving forward, states will increasingly try to bolster their own economies even if it threatens globalization. I think that states are beginning to realize their relative loss in power and will try to push back against globalization, however the process cannot be stopped like everyone else here seems to agree.
ReplyDeleteWhile many countries are trying to become less dependent on other economies I believe that the economies of the world are so intertwined that a trend toward de-globalization is unrealistic. You can look at the tags on the clothing that you are wearing and I can almost guarantee that the vast majority of them were not produced in the United States. Whenever a countries economy experiences a boom or depression it is felt in other economies all over the world due to this dependence and in my opinion this prevents a trend toward de-globalization.
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